After enduring months of skepticism and headlines labeling most NFTs as “worthless,” the market is displaying signs of revival. Recent weeks have seen a steady increase in sales, with October’s trading volume up by 32% compared to September. Notably, daily trading volumes have also seen an uptick in the past few days. While the market is far from its peak in 2021 and early 2022 when monthly sales reached billions of dollars, the numbers and overall sentiment are finally rebounding.
NFTs experience a surge in trading volume
The resurgence is influenced not only by the climbing prices of cryptocurrencies, such as Bitcoin’s 38% increase over the last 30 days to over $37,000, but also by a renewed interest in prominent projects. The floor prices of major NFTs have experienced substantial growth. For instance, CryptoPunks’ floor is up 82% in USD terms to about $125,500 over the past month, indicating a surge in demand. Other projects like the Bored Ape Yacht Club and Azuki NFTs have seen similar percentage increases.
Owners of these NFTs are asking for significantly more Ethereum (ETH) than a month ago, further accentuating the value appreciation. Many of the top 50 collections, as tracked by NFT Price Floor, have posted USD price gains in the past 30 days, showcasing a broadly positive trend. While rising crypto prices contribute to the upswing, it’s not the sole driving factor. Project-specific dynamics, like increased floor prices, indicate a renewed interest in NFTs. This is evident in the soaring trading activity for popular collections.
Bored Ape trading is up 140% in the past 30 days to $35.7 million, and CryptoPunks has seen a substantial increase to $25.3 million. This resurgence is reflected in the broader market, with CryptoSlam reporting a 22% increase in trading volume over the past 30 days for the projects and chains it tracks. DappRadar’s data also signals a positive trend, marking a 32% month-over-month increase in sales, rising from $306 million in September to $405 million in October.
Factors driving the rebirth in the digital collectibles market
Daily trading volume, as recorded by on-chain data on Dune, has surged for five consecutive days, reaching a three-month peak above $24 million on Thursday. Increased engagement is evident, with Tuesday witnessing the highest number of unique wallets for a single day in at least three months, totaling 16,615. However, not all aspects of the NFT market are experiencing uniform growth. Some projects, like DraftKings NFT trading for its Reignmakers fantasy game, have seen a decline of 40% over the past month to $11.7 million.
Similarly, Sorare NFT card trading is down nearly 7%, and trading on the Ethereum scaling network Polygon has plummeted by 58% over the past 30 days, according to CryptoSlam. While the recent positive indicators are injecting enthusiasm into the market, it’s crucial to consider the broader context. October’s $405 million trading volume, while a positive sign, is still a far cry from the peak month of January 2022, which saw roughly $5 billion in NFT trades. Similarly, the floor price for Bored Apes at $65,000 is considerably lower than the peak of $429,000 worth of ETH in April 2022.
The overall sentiment in the market is upbeat, with crypto Twitter buzzing with excitement over sizable NFT purchases, increased engagement, and the potential for greater gains. Despite the positive developments, challenges persist, exemplified by OpenSea’s recent downsizing, and reports of discomfort among attendees of ApeFest Hong Kong due to the use of the wrong UV lights. While the NFT market is far from its initial boom, recent positive trends and signs of life are injecting renewed excitement. The cautious optimism stems from increased trading volumes, rising NFT prices, and heightened engagement.
