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<h4 style="color: #252525;">As we bid farewell to another transformative year in the crypto space, we must evaluate how different sectors of the market performed. </h4>
In this article, we will look at one of the most captivating phenomena that has continued to redefine the crypto ecosystem: Non-fungible tokens (NFTs).
<h5>How did NFTs do in 2023?</h5>
NFT projects played an important role in crypto’s journey in 2023. Despite popular negative sentiments about the sectors, statistics show that NFT users have kept the space alive.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f534.png" alt="🔴" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/hashtag/NFT?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#NFT</a> <a href="https://twitter.com/hashtag/Facts?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Facts</a> <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f534.png" alt="🔴" class="wp-smiley" style="height: 1em; max-height: 1em;"> The top 3 most expensive NFT Sales in 2023…<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/2764.png" alt="❤" class="wp-smiley" style="height: 1em; max-height: 1em;"> 1) CryptoPunks #5066 — 857 ETH 2) Bored Ape Yacht Club #7090 — 800 ETH 3) Fidenza #545 — 625 ETH<a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Crypto</a> <a href="https://twitter.com/hashtag/NFTs?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#NFTs</a> <a href="https://twitter.com/hashtag/BAYC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BAYC</a> <a href="https://twitter.com/hashtag/CryptoPunks?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#CryptoPunks</a> <a href="https://twitter.com/hashtag/Fidenza?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Fidenza</a> <a href="https://t.co/lgxJgMhD96" rel="noopener noreferrer nofollow">pic.twitter.com/lgxJgMhD96</a>
 — All Facts Crypto (@AllFactsCrypto) <a href="https://twitter.com/AllFactsCrypto/status/1740357361095922084?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 28, 2023</a>
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In the past 30 days, the top 10 NFT blockchains have been on fire, racking up a massive $1.5 billion in sales. This shows that NFTs are still fashionable and in demand. Like in other sectors of the crypto industry, the NFT space welcomed innovations and saw some changes.
Some moments had a more lasting impact than others, and that’s what we’re looking at. For example, 2023 saw the emergence of Bitcoin Ordinals. There was also a division regarding creator royalties. In addition, <a href="https://www.altcoinbuzz.io/?s=the+sec" target="_blank" rel="noopener noreferrer nofollow">the SEC</a> brought its first case against NFTs this year.&nbsp;
<h5 style="color: #252525;">Ordinals Took Us by Surprise</h5>
Earlier this year, Casey Rodarmor, a software engineer, invented <a href="https://www.altcoinbuzz.io/?s=ordinals" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Ordinals</a>. Rodarmor launched the application on the Bitcoin mainnet after a blog post on January 21. Bitcoin Ordinals are the equivalent of NFTs on the Bitcoin blockchain. It is safe to say that the Bitcoin Ordinals took us all by surprise.
Ordinals are a way to create distinct digital items out of individual Satoshis that may be inscribed with text or graphics. This concept departs from traditional digital assets and NFTs as it relies on Bitcoin’s existing blockchain structure.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f7e7.png" alt="🟧" class="wp-smiley" style="height: 1em; max-height: 1em;"> What happened in the last 24 hours in the Ordinals ecosystem <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f7e7.png" alt="🟧" class="wp-smiley" style="height: 1em; max-height: 1em;">
 First brc-20 launched on a zk-rullup on bitcoin, and much more,
 A <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;">
 1/11 <a href="https://t.co/7Moci9WeYB" rel="noopener noreferrer nofollow">pic.twitter.com/7Moci9WeYB</a>
 — Jiurn <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9d9-1f3fd-200d-2642-fe0f.png" alt="🧙🏽‍♂️" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@Jiurn) <a href="https://twitter.com/Jiurn/status/1738820213393473854?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 24, 2023</a>
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Ordinals were beyond mere hype. The stats prove this. By December 2023, 263K users had written over 47M Ordinals on Bitcoin. The expanded use of the network has also benefited miners, who have made a huge $150 million in fees on $850 million of traffic on <a href="https://www.okx.com/learn/top-ordinals-marketplaces" target="_blank" rel="noopener noreferrer nofollow">Ordinals marketplaces</a>.&nbsp;
Thanks to Ordinals transactions, the Bitcoin network surpassed Solana in monthly sales volume in May. With nearly $744 million in sales over 30 days in December, the network also surpassed the Ethereum network’s $391 million in revenues. It is important to state that not all Bitcoiners believe Ordinals are a plus for the network. But we can all agree that the Ordinals took the year by storm.
<h5 style="color: #252525;">Some Outstanding Moments for NFT Projects</h5>
Several NFT projects made outstanding comebacks in 2023. For example, the renowned NFT collection <a href="https://dappradar.com/nft-collection/cryptopunks?_gl=1*1stkeoc*_ga*MzU5Njc1NDAzLjE2ODU3MDQzMzE.*_ga_BTQFKMW6P9*MTcwMzgzOTk0NS4xMS4xLjE3MDM4NDAyNDIuMC4wLjA." target="_blank" rel="noopener noreferrer nofollow">Cryptopunks</a> maintained its media spotlight in 2023 with sales that had never been seen before. A record-breaking sale of a Cryptopunk masterwork for an incredible $1.1 million on the market demonstrated the value and ongoing appeal of these digital treasures.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 1 whale sweeps 6 Fidenza, 1 Autoglyphs, and 5 PudgyPenguins for $1,517,100 in the past 24h.
 In 15 days, they’ve acquired 16 Pudgys, 9 Azukis, 5 BAYC and 2 CryptoPunks.
 With over $6.45M across two wallets, their buying power remains strong. <a href="https://t.co/5LHkTUxjkQ" rel="noopener noreferrer nofollow">pic.twitter.com/5LHkTUxjkQ</a>
 — VanGoya (@vangoyaa) <a href="https://twitter.com/vangoyaa/status/1740566858674438182?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 29, 2023</a>
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Interestingly, several other cryptopunks sold for substantial prices in the hundreds of thousands. This rebound established a standard for high-value deals in the face of market turbulence and reaffirmed the NFT market’s enduring appeal and investment potential.
Another highlight of the NFT market this year was the battle between <a href="https://opensea.io/" target="_blank" rel="noopener noreferrer nofollow">OpenSea</a> and Blur. Both platforms are NFT marketplaces. However, Blur launched a strong rivalry with OpenSea for the top spot.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 OpenSea vs Blur, Q1 2023 <a href="https://t.co/sSzpYnbsVa" rel="noopener noreferrer nofollow">pic.twitter.com/sSzpYnbsVa</a>
 — Loopify <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9d9-200d-2642-fe0f.png" alt="🧙‍♂️" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@Loopifyyy) <a href="https://twitter.com/Loopifyyy/status/1626685285965635585?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 17, 2023</a>
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The “Royalty War” had a ripple effect on the entire NFT ecosystem. Blur’s victory in taking a sizable chunk of OpenSea’s previously held royalty market share demonstrated the dynamic nature of market rivalry. This win affected marketplace fees and revenue generation.&nbsp;
<h5 style="color: #252525;">The SEC’s Case Against NFTs</h5>
Another high-profile moment this year was the SEC’s case against NFT. The US regulator charged Los Angeles-based entertainment firm Impact Theory for selling NFTs, which it termed unregistered securities.
<a href="https://www.altcoinbuzz.io/?s=sec" target="_blank" rel="noopener noreferrer nofollow">The SEC</a> charged a couple of other NFT projects for selling unregistered securities. However, several crypto experts and leading voices, such as Hester Pierce, rejected the commission’s claims.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Wow! SEC commissioners Peirce and Uyeda just released a statement saying they DISAGREE with the SEC's actions against Stoner Cats nfts
 Comparing nfts to 1970s Star Wars collectables, and stating the need to protect artists' ability to create without excessive legal constraints<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f92f.png" alt="🤯" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/w7xOCI0grv" rel="noopener noreferrer nofollow">pic.twitter.com/w7xOCI0grv</a>
 — okHOTSHOT (@NFTherder) <a href="https://twitter.com/NFTherder/status/1702057933389836293?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 13, 2023</a>
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Regardless, the SEC’s view of NFTs as unregistered securities led to a call for regulatory clarity on the asset class.&nbsp;
<h6 style="color: #252525;">The optional royalty trend</h6>
<a href="https://www.altcoinbuzz.io/?s=royalties+nfts" target="_blank" rel="noopener noreferrer nofollow">Royalties</a> made NFTs popular. They ensured creators earned a percentage of their work. However, the concept of optional royalties emerged in 2022 but took off in full force this year.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 The new king of <a href="https://twitter.com/hashtag/NFTs?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#NFTs</a> has arrived.<a href="https://twitter.com/blur_io?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Blur_io</a> has zero marketplace fees and optional royalty payments, making it one of the cheapest venues to trade NFTs.
 Blur has surpassed OpenSea to become the largest venue to trade NFTs with a 53% volume market share. <a href="https://t.co/wUmVdJjosJ" rel="noopener noreferrer nofollow">pic.twitter.com/wUmVdJjosJ</a>
 — Elemont (@ElemontCapital) <a href="https://twitter.com/ElemontCapital/status/1628536594583158787?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 22, 2023</a>
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Optional royalties allow buyers to decide how much of the royalties they wish to contribute to an NFT. However, the drawback is that creators might not receive payment under this approach. Research showed that NFT creators received little royalties this year.
Royalty losses from the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFTs reached almost $20 million this year.
The trends witnessed this year show that the NFT space will see increased competition in 2024. We expect more integration between NFTs and DeFi in 2024. In addition, we believe the sector will have clearer policies in the coming year.
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<h5 style="color: #252525;">Disclaimer The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</h5>
The post <a href="https://www.altcoinbuzz.io/spotlight/how-did-nfts-perform-in-2023/" rel="noopener noreferrer nofollow">How Did NFTs Perform in 2023?</a> appeared first on <a href="https://www.altcoinbuzz.io" rel="noopener noreferrer nofollow">Altcoin Buzz</a>.

How Did NFTs Perform in 2023?

Altcoin Buzz

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