According to Token Terminal data, the monthly trading volume of Luxray, a decentralized non-fungible token (NFT) and digital collectibles marketplace, has dropped by 97%, from $71.9 million registered in September 2023 to just $2.1 million in October. shared Through Web3 Academy on October 26 via X Show.Thank you for reading this post, don't forget to subscribe!
Luxray’s monthly volume tanking, falling to $2.1 million in October
At the time of writing on October 26 the unprecedented drop in activity could not be attributed to any specific Luxray-related event. This contraction is despite improvements in the broader cryptocurrency market, as seen by the welcome expansion of Bitcoin (BTC) and the leading asset. Ethereum (ETH).
According to trackers, monthly volumes have been falling continuously since April 2023. Then, the average volume exceeded $150 million, pointing to growing interest, especially from traders. At the time, it should be noted that most crypto assets were also rising.
Declines in monthly trading volume appear rare. Source: Web3 Academy on X
Notably, Bitcoin broke higher, touching $30,000, which increased demand and raised hopes that the market is looking to bounce back after a decline in 2022. From June to September, the average monthly volume at Luxray more than halved before falling to less than $3 million. October 2023.
A surge in monthly trading activity in April coincided with the release of Luxshare v2, in which the platform’s developers reduced trading fees by 75%, from 2% to 0.5%. The updated version is also more gas efficient, allowing traders to save up to 30% on gas compared to the previous version. Additionally, with Luxray allowing traders to place bulk orders when buying or selling, monthly volume grew rapidly in April.
NFT bull run postponed, will Luks break resistance line?
With a sharp contraction in activity, Luxshare’s native token LUKS is also flat-lining given the price action. At spot rates the token trades around the $0.070 level, retesting August highs. However, an inverted hammer suggests that the uptrend may be losing momentum, and bears may reverse gains.
Despite the concerns, LOOKS is 60% above the 2023 H2 low and could still rise in the coming months. Looking at the candlestick arrangement in the daily chart, a close above $0.070 with increasing volume could set the ball rolling for buyers who expect the token to retest the 2022 low at around $0.12.
Looks price on 26th October. Source: LOOKSUSDT, Trading View on Binance
Overall, NFT and digital collectible trading activity remains relatively low, even as bullish traders expect prices to reverse and rally in 2024. Recently, there was a slight increase in the minimum prices of major NFT collectibles like Bored Ape Yacht Club (BAYC). Azuki, and CryptoPunk. However, with trading volume and the number of new owners still at record lows, researchers peg the possibility of an NFT bull run starting in the fourth quarter of 2023.
Feature image from Canva, chart from TradingView