Written by: Shaofaye123, Foresight News
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, indicating a warming trend in the NFT sector. However, compared to the increase in Ethereum ecosystem NFTs, Solana and BTC ecosystem NFTs still perform mediocre.
This article will give you a quick overview of the recent NFT data in the Ethereum sector and briefly analyze the reasons for the warming.
Positive data for the Ethereum NFT sector.
From the overall trend of the NFT sector, according to SoSovalue data, the NFT sector has performed well over the past month, with overall data gradually climbing. The monthly investment return rate 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/assets/cryptoindex/NFT
According to data from CryptoSlam, the overall sales of NFTs have shown a rebound trend. In October of 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, a month-on-month increase of 18%. In addition, the number of NFT transactions has also gradually increased, with 7.2 million NFT transactions in October, a 42% increase compared to 5 million in September. In November, NFT sales once again achieved significant growth, increasing by 57.8% compared to October, exceeding $562 million. Sales on the Ethereum network exceeded $216 million, a 12% increase compared to October.
Source: https://www.cryptoslam.io/nftglobal?timeFrame=month&headerPeriod=30d
Among them, CryptoPunks led the NFT market, with 30-day sales exceeding $49 million, a month-on-month increase of nearly 400%. In addition, according to data from Blur, 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%; Mutant Ape Yacht Club saw a 97% increase in floor price over 7 days.
Compared to the warming of the ETH NFT sector, the Solana NFT sector still performs mediocre. According to data from CryptoSlam, 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 declined 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 is recovering, and liquidity is gradually spilling over.
Since the hype surrounding the Ethereum ETF began, with continuous inflows into ETFs, the overall Ethereum ecosystem has been slowly warming. According to SoSovalue data, the number of days and amounts of net inflow into the Ethereum ecosystem are increasing. The price of ETH has also risen accordingly, with a nearly 45% increase in the past month, climbing from around $2500 to $3700. The staking sector Puffer has doubled in the past week, and EIGEN has also seen a 30% increase in one week.
Source: https://sosovalue.com/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 spilling over. According to The Block data, the monthly trading volume on the Ethereum chain has gradually increased over the past three months, with November's trading volume exceeding $183.7 billion, the highest peak this year.
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 spillover of liquidity, the overall price of the NFT sector remains at a relatively low level compared to previous years. Users who have held NFTs for a long time may be less likely to choose to sell during the initial phase of the launch. From the perspective of circulation and supply, the NFT market may have certain potential. Additionally, with the upcoming ME TGE, predictions from Truemarkets regarding market NFT attracting actions from V God have also drawn significant market attention.
However, whether the NFT market can rise again cannot rely solely on a temporary liquidity spill. It is necessary to further seek innovation, match demand, and implement real application scenarios to be effective.
