After months of viral stories with dizzying headlines about how “worthless” most NFTs have becomeit decreases NFT The market is finally showing real signs of life.
Sales have risen steadily in recent weeks, with trading volume unchanged from October an increase of 32% compared to September And daily trading volumes increase each of the past few days. Prominent NFT prices are also rising, and not just because of rising crypto prices. And yes, people spend six-figure sums on JPEG artwork of rocks.
Are we back? Not so fast. While these hints of excitement are starting to send traders into a frenzy again, sales and prices are still nowhere near the levels of 2021 and early 2022, when NFTs were generating billions of dollars in sales every month.
But after a pretty rough year and a half for NFTs, the numbers and broader sentiment are finally turning around. And if you have NFTs in your wallet, they may be much more valuable now than in recent months.
NFT Volume Hits Highest Level in Three Months – You Can Thank This Massive CryptoPunks Sale
Better yet, people might actually want to buy them. Here’s what you need to know about the rebirth of the NFT market.
Prices are rising
Cryptocurrency is becoming hot again. Bitcoin is up 38% in the past 30 days to a current price above $37,000, more than double the price from this time last year. And Ethereum is up 33%as well, with some altcoins posting even bigger gains.
Rising crypto prices are also similarly contributing to rising NFT prices, but that’s not the whole story. For example, some of the largest NFT projects have seen price floors rise, or the price of the cheapest listed NFT on a marketplace.
NFTs are back? Revenue rose 32% in October, led by Ethereum
Expressed in US dollars, the CryptoPunks The floor has risen 82% over the past 30 days to around $125,500 Bored Ape Yacht Club price floor has risen 67% to $65,000, and Azuki NFTs are up as much as 107% to $13,200. However, in Ethereum (ETH) terms, Punks are up 31%, Apes up 25% and Azuki assets up 48%.
In other words, owners of those NFTs are demanding significantly more ETH than they were a month ago, And the value of that ETH has also increased significantly. Go down the line at NFT price floora tracker for NFT values, and all but two of the top 50 collections by total market cap have posted USD price gains over the past 30 days.
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Granted, there are plenty of projects that are unlikely to make significant gains, and may never return to blue chip status. But if tokenized rock artwork can sell for $100,000 or more and so can counterfeit “Simpsons” NFTs generating millions of dollars in transactionswho knows which projects will attract attention again?
Sales have also increased
Rising prices are meaningless if no one buys the NFTs, but sales are also rising.
As mentioned, data source DappRadar an increase of 32% month on month in NFT sales, from $306 million in September to $405 million in October.
And according to on-chain data about Dune collected by data analyst Hildobby, daily NFT trading volume has increased for five consecutive days this week, reaching a new quarterly peak above $24 million on Thursday. There are also more traders in the mix, with Tuesday seeing the most unique single-day wallets in at least three months at 16,615.
The rising price of crypto and sales of grail NFTs have pushed the average NFT sale price to $195.65 today.
That’s the highest we’ve seen in 238 days, when we saw an average selling price of $197.03 on March 16.
pic.twitter.com/3qUD6QbShG
– CryptoSlam! (@cryptoslamio) November 9, 2023
A look at sales data from CryptoSlam reveals a significant increase in trading activity for popular NFT collections. Bored Ape trading is up 140% in the last 30 days to $35.7 million, while CryptoPunks is up 1,755 to $25.3 million and Gods unleashed NFT trading cards rose nearly 22% to $19.4 million during that period.
Admittedly, not everything is purely positive. DraftKings NFT Trading in the fantasy game Reignmakers has fallen 40% in the past month to $11.7 million So rare NFT card trading has fallen nearly 7% to $11.5 million over the past month. And trading on the Ethereum scaling network Polygon is down as much as 58% in the last 30 days, says CryptoSlam.
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But overall, NFT trading is on the rise. CryptoSlam’s own data indicates a 22% increase in trading volume over the past 30 days for the projects and chains it tracks.
The vibrations return
After well over a year of broad declines in both crypto prices and NFT sales, these recent green shoots and signs of life are creating excitement across the market. Crypto Twitter is full of longtime traders fanning the flames of excitement about significant NFT purchases, increased engagement, and the possibility of bigger profits ahead.
OpenSea Cuts NFT Marketplace Staff by 50%
It’s not all good vibes, though. OpenSea, long the leading marketplace for NFTs until earlier this year, fired half of its team last Friday and reportedly had his valuation dropped by almost 90% from investor Coatue. And last weekend, visitors to ApeFest Hong Kong – the exclusive festival for Bored Ape NFT holders –complained of eye painapparently because of the the wrong type of UV lamp is used.
Context is also important. While a 32% month-over-month increase in NFT trading volume is a positive sign, October’s total of $405 million is still a far cry from the approximately $5 billion traded during the peak month of January 2022. And the bottom price of €65,000 for Bored Apes is well below expectations. peaking at $429,000 in ETH as of April 2022.
Never forget pic.twitter.com/AAGoPmMCIv
— EVMaverick392 (@EVMaverick392) November 10, 2023
Likewise, Bitcoin is still down 46% from its November 2021 peak price. On the other hand, Bitcoin’s price is more than doubled since this time last year. It’s all relative.
We’re still a long way from the madness of the initial NFT boom and the height of the crypto trading craze, but things happen and excitement abounds. And if you bought some NFTs during the hype cycle, it’s worth seeking them out; they may not be so worthless anymore.
Edited by Guillermo Jimenez