Original author: Shaofaye 123, ForesightNews
Recently, the NFT trading platform Blur has seen consecutive weekly increases, with a monthly increase of nearly 80%. The NFT sector has shown abnormal movements, with token monthly returns reaching 50%. The floor prices of blue-chip NFT series have rebounded over 30% within 7 days, and the NFT sector seems to show a warming trend. However, compared to the increase in Ethereum ecosystem NFTs, Solana and BTC ecosystem NFTs still perform mediocrely.
This article will give you a quick overview of the recent Ethereum sector NFT data and analyze the reasons for the warming.
The data for the Ethereum NFT sector is improving
From the overall trend of the NFT sector, according to Sosovalue data, the NFT sector has performed well in the past month, with overall data gradually increasing. The monthly return on investment can reach 50%, but compared to the nearly 100% monthly return rates of popular narratives such as PayFi, RWA, and AI, it still does not belong to the mainstream narrative of this round of speculation.
Source: https://sosovalue.com/zh/assets/cryptoindex/NFT
According to CryptoSlam data, there has also been a rebound trend in the overall sales of NFTs. In October this year, the total trading volume of NFTs began to grow, breaking the trend of seven consecutive months of decline in NFT monthly sales, reaching $356 million, with a month-on-month increase of 18%. In addition, the number of NFT transactions has also gradually increased, reaching 7.2 million transactions in October, a 42% increase from 5 million in September. In November, NFT sales once again achieved significant growth, increasing by 57.8% from October, exceeding $562 million. Sales on the Ethereum network exceeded $216 million, a 12% increase from October.
Source: https://www.cryptoslam.io/nftglobal?timeFrame=monthheaderPeriod=30d
Among them, CryptoPunks leads the NFT market with a 30-day sales volume exceeding $49 million, a nearly 400% increase month-on-month. In addition, according to Blur data, the floor price of blue-chip NFT series has rebounded over 30% within 7 days. Among them, the floor price of Bored Ape Yacht Club increased by 72% over the week, Pudgy Penguins increased by 29%, and Mutant Ape Yacht Club increased by 97%.
Compared to the recovery of the ETH NFT sector, the Solana NFT sector still performs mediocrely. According to CryptoSlam data, the CryptoSlam ETH NFT Composite Index, which measures the performance of the ETH NFT market, has rebounded nearly 40% in the past three months. Meanwhile, the Solana NFT index has shown almost no fluctuations in the past three months, and has decreased by 48% since the beginning of the year. Solana NFT infrastructure TNSR and MPLX have also not shown significant increases.
Source: https://www.cryptoslam.io/indexes/cseth
Ethereum is recovering, and liquidity is gradually overflowing
Since the speculation around the Ethereum ETF began, the net inflow of the ETF has been gradually increasing, and the overall Ethereum ecosystem sector is slowly warming up. According to Sosovalue data, the net inflow days and amounts in the Ethereum ecosystem are continuously increasing. The price of ETH has also risen accordingly, with a nearly 45% increase in the past month, rising from around $2500 to $3700. The staking sector Puffer has doubled in the past week, and EIGEN has also increased by 30% in a week.
Source: https://sosovalue.com/zh/assets/etf/Total_Crypto_ETH_ETF_Fund_Flow?page=usETH
In addition to the rebound in exchange token prices, on-chain liquidity is also gradually overflowing. According to The Block data, Ethereum's on-chain monthly trading volume has gradually increased over the past three months, with November exceeding March's trading volume reaching this year's peak of $183.7 billion.
Source: https://www.theblock.co/data/on-chain-metrics/ethereum/ethereums-adjusted-on-chain-volume-monthly
With the recovery of Ethereum and liquidity overflow, the overall price of the NFT sector is at a relatively low level compared to previous years. Users who have held NFTs for a long time may choose to hold rather than sell during the initial phase of the launch. From the perspective of circulation and supply, the NFT market may have certain potential. In addition, with the upcoming ME TGE, Truemarkets predicts that market NFT attracting actions such as purchases by V God have also drawn significant attention from the market.
However, whether the NFT market can rise again is difficult to sustain with just a temporary liquidity overflow. It requires further innovation, matching demand, and implementing real application scenarios to be effective.
