In a remarkable development, non-fungible token (NFT) trading volumes have reached the levels of May 2022, indicating that the digital asset class is continuing to surge in popularity.
The news is a major milestone for the NFT industry, which has experienced explosive growth in recent months. Last month, the total trading volume of NFTs exceeded $200 million, smashing the previous record of $125 million in April.
The rise in NFT trading is being driven by a surge in demand from both institutional and retail investors. Institutional investors are increasingly seeing NFTs as a viable asset class, while retail investors are drawn by the potential returns and the novelty of the asset class.
The increased demand for NFTs has also been fuelled by the rising popularity of the Ethereum blockchain, which has become the platform of choice for most NFTs. As the Ethereum network continues to expand, more projects are choosing to issue their tokens on the platform, creating further demand for NFTs.
The surge in NFT trading volume has also led to an influx of new projects entering the space.