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NFTs surge following SEC failure to appeal Grayscale case

by Melai Briones

Non-fungible tokens (NFTs) have experienced a significant surge in trading volumes, raising excitement within the crypto community. This spike in interest can be attributed to the U.S. Securities and Exchange Commission’s (SEC) failure to file an appeal in the Grayscale Bitcoin Trust case.

According to data from CryptoSlam.io, the NFT ecosystem has witnessed a substantial 15% increase in the past 24 hours, with total trading volume surpassing $9.7 million. Moreover, the number of investors actively acquiring NFTs has also seen a notable 5.9% rise.

Among the different platforms, Ethereum-based NFT collections have demonstrated the most significant growth, with a staggering 26.7% increase in sales. These collections have generated $5.2 million in trading proceeds over the same 24-hour period. Additionally, digital collectibles on the Mythos Chain and Solana blockchain have also experienced notable spikes in trading sales, accumulating $1.3 million and $1 million, respectively. Mythos Chain NFTs have seen a 4.5% increase, while Solana-based NFTs have exhibited an impressive 23.5% rise.

This surge in interest in NFTs can be attributed to the ongoing legal battle between Grayscale, a digital currency asset management company, and the SEC. Grayscale has been striving to convert its Bitcoin Trust into a more investor-friendly spot BTC exchange-traded fund (ETF). In August, a Washington, D.C. appeals panel declared the SEC’s decision to reject Grayscale’s proposed Bitcoin ETF as invalid and arbitrary. This development has left the future of Grayscale’s spot Bitcoin ETF uncertain but holds significant implications for both the crypto market and indirectly, the NFT space.

In other news, a cross-party committee of the U.K. Parliament has recently called on the government to take measures to protect the rights of artists and consumers in the NFT market. They have expressed concerns regarding fan tokens in sports, which provide fans with exclusive access and rewards from their favorite teams. The committee’s findings, outlined in a comprehensive 500-page report, shed light on the influence of blockchain and NFTs on art and culture. While acknowledging the positive aspects of NFT technology, such as expanding the artist’s reach and establishing ownership, the report also raises concerns about fraudulent activities and potential legal violations associated with NFTs.

In a somewhat sobering revelation, a report by dappGambl has indicated that nearly 95% of NFTs currently hold no market value. Out of the identified 73,257 digital collections, a staggering 69,795 have a market capitalization of zero Ethereum (ETH). This data paints a vivid picture of the challenges faced by NFT creators and buyers in the current market landscape, with a significant majority of collections remaining unsold, and only a mere 20% securing full ownership.

As the NFT market continues to evolve, it will be interesting to observe how these recent developments, including the SEC’s actions, regulatory efforts, and market trends, shape the future of this increasingly popular digital asset class.

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