There are several ways that an NFT can arrive in a wallet - this is a breakdown of how Recap categorises and makes sense of these transaction types.
Direct purchase (or sale) from another seller (or buyer), via a marketplace such as OpenSea or LooksRare
Recap shows this type of transaction as a SWAP as, for tax purposes, it’s a swap of ETH for an NFT (or vice-versa).
A deposit into a smart contract, for distribution thereafter to the buyer or seller
I sell an NFT, but that NFT was scooped up by an aggregating app or contract. Genie and Gem were well-known examples (both are historical names now: Genie was acquired by Uniswap Labs and folded into Uniswap's NFT experience, while Gem became OpenSea Pro in 2023), but the pattern is the same whichever aggregator is involved. In this case, my activity will show this sale as a deposit.
At first glance, this will seem incorrect - but what’s actually happening is that the NFT sale has been aggregated by a smart contract, along with some other NFTs. The overall aim is for the buyer to reduce transaction fees, as the contract attempts to aggregate many NFTs into a single Ethereum transaction.
Genie and Gem’s contract addresses can still be seen on Etherscan. These are examples of how this aggregation process works.
Recap shows this type of transaction as a DEPOSIT as the aggregator being used is having the asset deposited to its smart contract for later redistribution.