While Bitcoin is flaunting a whopping 22% surge, climbing from $28,000 all the way up to $35,000, and dragging the rest of the crypto world up with it, the NFT market is sitting this one out.
The Dissonance in Digital Assets
You see, it’s not all sunshine and rainbows in the digital asset realm. The broader crypto rally has most assets in the green, with only two exceptions among the top 100 by market capitalization.
However, the NFT market is proving to be a tough nut to crack. Major players like CryptoPunks and Pudgy Penguins are seeing their floor prices take a hit, with a 4% and 5% drop respectively over the past week.
And the bleeding doesn’t stop there. The Nansen NFT-500 index is currently at a dismal 308, a far cry from its 1,700 peak back in October. It seems like the NFT market is playing by its own rules, impervious to the crypto frenzy happening around it.
A Glimmer of Hope?
But not all is lost in the NFT world. Despite the overall downward trend, there are some metrics that suggest a potential turnaround. Trading volumes on mainnet Ethereum hit a yearly low of 29,742 ETH, or under $50 million, in the week ending October 9.
However, the tide seems to be turning, with the week ending October 23 witnessing a spike to 47,369 ETH, equivalent to over $85 million in NFT trades and mints.
Furthermore, the number of “active projects,” or collections exceeding sales benchmarks such as 10, 100, and 1,000 ETH, has doubled from 41 to 80 since October 8. It’s a sign that, while the market may be down, it’s certainly not out.
The NFT market is a beast of its own, operating independently of the broader crypto rally and driven by unique factors such as perceived value, rarity, and sentiment.
The current state of affairs highlights this stark contrast, as well as the resilience and unique nature of the NFT market. As trading volumes begin to climb and active projects increase, there’s a glimmer of hope that the NFT market may be plotting its comeback, ready to rise from the ashes on its own terms.