In the realm of digital collectibles, the winds of change are blowing, and your NFTs might just be on the brink of a comeback. After enduring a prolonged slump that had skeptics labeling them as “worthless,” the NFT market is stirring with newfound life.
October has seen a 32% surge in trading volume compared to September, signaling a potential shift in the NFT landscape. Daily trading volumes are on the rise, and prominent NFT prices are climbing, not solely due to the upward trajectory of crypto prices. Yes, people are indeed shelling out six figures for digital images of rocks.
Are we witnessing a full-scale revival? Not quite. While the current buzz is reminiscent of the excitement from 2021, where NFTs generated billions monthly, we’re not quite there yet. However, after a challenging year and a half, the numbers and overall sentiment surrounding NFTs are finally making a turn for the better.
Cryptocurrency, once again in the spotlight, is playing a role in boosting NFT prices. Bitcoin is up 38% in the last 30 days, Ethereum has seen a 33% surge, and altcoins are experiencing substantial gains. Notably, leading NFT projects like CryptoPunks, Bored Ape Yacht Club, and Azuki NFTs are witnessing significant increases in their floor prices.
Owners of these NFTs are now demanding higher prices in Ethereum terms, reflecting a surge in value. While not every project is guaranteed to see substantial gains, the recent success stories, such as selling tokenized rock illustrations for $100,000, suggest a market unpredictable in its potential.
Rising prices mean little if NFTs aren’t finding buyers. Fortunately, the data tells a different story. NFT sales have increased by 32% from September to October, reaching $405 million. Daily NFT trading volume has hit a three-month peak, surpassing $24 million. Unique wallet activity is also on the rise, indicating a growing interest in NFT trading.
Popular NFT collections like Bored Ape, CryptoPunks, and Gods Unchained are experiencing notable increases in trading activity. While some projects, like DraftKings and Sorare, have seen declines, the overall trend points to a resurgence in NFT trading.
After a prolonged period of decline in both crypto prices and NFT sales, the recent positive indicators are generating excitement across the market. Crypto Twitter is buzzing with traders sharing stories of substantial NFT purchases, heightened engagement, and the anticipation of greater gains.
Admittedly, it’s not all smooth sailing. OpenSea, once a leading NFT marketplace, recently faced setbacks with layoffs and a valuation slash. ApeFest Hong Kong attendees complained of eye discomfort, serving as a reminder that challenges still exist.
While the recent 32% increase in NFT trading volume is promising, it’s crucial to maintain perspective. October’s $405 million is a far cry from the peak $5 billion traded in January 2022. The current floor price for Bored Apes, while rising, is still well below the peak of $429,000 worth of ETH from April 2022.
In the broader context, Bitcoin is down 46% from its peak in November 2021. However, the fact that Bitcoin’s price has more than doubled since last year underscores the relative nature of these changes.
We’re not back to the frenzied heights of the initial NFT boom, but the wheels are in motion, and excitement is palpable. If you invested in NFTs during the hype cycle, it might be time to revisit your wallet—they might not be as worthless as you once thought. The NFT renaissance is unfolding, and your digital treasures could be on the verge of a surprising resurrection.