Original author: Shaofaye123, ForesightNews
Recently, the NFT trading platform Blur has seen consecutive weekly increases, with a monthly increase of nearly 80%. The NFT sector has shown unusual movements, with token monthly returns reaching 50%. The floor price of blue-chip NFT series has rebounded by over 30% within 7 days, and the NFT sector seems to be showing signs of recovery. However, compared to the growth of Ethereum ecosystem NFTs, Solana and BTC ecosystem NFTs still perform moderately.
This article will give you a quick overview of recent Ethereum NFT data and analyze the reasons for the recovery.
The data for the Ethereum NFT sector is looking positive.
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 rising. The monthly return on investment can reach 50%, but compared to the nearly 100% monthly return rates of hot narratives like PayFi, RWA, AI, etc., it still does not belong to the mainstream narratives of this round of speculation.
Source: https://sosovalue.com/zh/assets/cryptoindex/NFT
According to CryptoSlam data, the overall sales of NFTs have also shown a rebound trend. In October this year, total NFT trading volume began to grow, breaking the trend of seven consecutive months of decline in NFT monthly sales, reaching $356 million, a month-on-month increase of 18%. In addition, the number of NFT transactions has gradually increased, with October's NFT transaction volume reaching 7.2 million, a 42% increase from 5 million in September. In November, NFT sales again achieved significant growth, increasing by 57.8% compared to October, exceeding $562 million. Ethereum network sales exceeded $216 million, up 12% from October.
Source: https://www.cryptoslam.io/nftglobal?timeFrame=month&headerPeriod=30d
Among them, CryptoPunks leads the NFT market, with sales exceeding $49 million in 30 days, a month-on-month increase of nearly 400%. In addition, according to Blur data, the floor price of blue-chip NFT series has rebounded by over 30% within 7 days. The floor price of Bored Ape Yacht Club increased by 72% in 7 days, Pudgy Penguins by 29%, and Mutant Ape Yacht Club by 97%.
Compared to the recovery of the ETH NFT sector, the Solana NFT sector still performs moderately. According to CryptoSlam data, the CryptoSlam ETH NFT Composite Index, which measures the performance of the ETH NFT market, has rebounded by nearly 40% in the past three months. However, 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. The Solana NFT infrastructure TNSR and MPLX have also not shown significant increases.
Source: https://www.cryptoslam.io/indexes/cseth
Ethereum recovery, liquidity gradually overflowing.
Since the Ethereum ETF has been speculated upon, with net inflows of the ETF continuously rising, the overall Ethereum ecosystem sector is slowly warming up. According to Sosovalue data, the number and days of net inflows in the Ethereum ecosystem are continuously increasing. The price of ETH has also risen accordingly, with an increase of 45% in the past month, rising from around $2500 to $3700. The staking sector Puffer has doubled in the past week, and EIGEN has also seen a weekly increase of 30%.
Source: https://sosovalue.com/zh/assets/etf/Total_Crypto_ETH_ETF_Fund_Flow?page=usETH
In addition to the recovery of exchange token prices, on-chain liquidity is also gradually overflowing. According to The Block data, the monthly trading volume on the Ethereum chain has gradually risen over the past three months, with November's trading volume exceeding March's peak of $18.37 billion.
Source: https://www.theblock.co/data/on-chain-metrics/ethereum/ethereums-adjusted-on-chain-volume-monthly
In addition to the recovery of Ethereum and the overflow of liquidity, the overall price of the NFT sector is at a relatively low level compared to previous years. Users who hold NFTs for the long term may be less likely to sell during the early stages of activation. From the perspective of circulation and supply, the NFT market may have certain potential. Additionally, with ME TGE approaching, Truemarkets predicts that market NFT attracting purchases from V God and other actions have also garnered significant attention.
However, whether the NFT market can rise again depends on more than just a temporary overflow of liquidity. Further innovation is needed to match demand and implement real application scenarios effectively.
