Is NFT making a comeback?
When people mention NFTs (non-fungible tokens), many first think of the crazy PFP (profile picture) market craze of 2021, where even the once-glorious Bored Apes (BAYC), Cryptopunks, or even just a stone, were traded at sky-high prices.
However, the trading volume of NFTs has plummeted by over 90% in less than a year, and many previously high-priced NFT projects are now nearly nonexistent, leading many to question the future of NFTs.
Interestingly, as the cryptocurrency market fully recovers this November, the NFT market has also begun to show strong signs of recovery recently.
According to the latest data from CoinGecko, the overall NFT market capitalization has grown by 17.3% in the past week, reaching 8.8 billion USD, with trading volume surging nearly 48% in the past 24 hours, and the floor prices of several blue-chip projects have also shown significant rebounds.
Blue-chip NFTs lead the recovery trend.
In the NFT market, so-called 'blue-chip' NFTs have always been a core focus for investors, and leading the rebound in this wave are (CryptoPunks), commonly known as Bored Apes (Bored Ape Yacht Club) (BAYC), as well as (Pudgy Penguins) and the Japanese anime style project (Azuki).
According to data from NFT trading platform Blur, (CryptoPunks) transactions in November reached 49 million USD, with 388 transactions, an increase of 392% compared to October, holding a 40% market share and maintaining its lead. The project's floor price has also increased by 21% in the past 7 days, reported at 45.3 $ETH as of the time of writing.
Considered the second-largest blue-chip, (Bored Ape Yacht Club) has also performed remarkably, with a trading volume of 1,486 $ETH in just the past day, and as of the time of writing, the floor price is reported at 20.2 $ETH, with a weekly increase of 59.06%, and nearly a 75% increase over the past month.
Additionally, the floor prices of (Pudgy Penguins) and (Azuki) have also joined this wave of blue-chip rebound, with the former's weekly increase reaching 30% and the latter's weekly increase at 28.07%.
The overall trading volume of the market has significantly rebounded.
In addition to the four major blue chips, according to data from CryptoSlam, the overall NFT market sales in November reached 562 million USD, marking the highest sales since May of this year (May sales were close to 600 million USD). The overall trading volume of the NFT market in the past week has surpassed the November trajectory, indicating that the market has entered a new active phase.
The competition among NFT platforms is becoming increasingly intense, with Blur leading the market share on EVM chains. In November, the total trading volume reached 271 million USD, while OpenSea ranked second with 161 million USD.
There is still a gap from the peak.
It is important to note that despite the signs of recovery in NFT market trading volume, it cannot mask the gap compared to the peak period. The CryptoSlam 500 NFT index is currently only at 1,135.04 points, down 53.77% from the peak of 2,494.74 points.
Moreover, despite (CryptoPunks), (Bored Ape Yacht Club), (Pudgy Penguins), and (Azuki) leading a wave of blue-chip rebounds, investors are facing losses of over 50% compared to the historical highs of these projects.
Furthermore, compared to the past, the structure of the NFT market has changed significantly; the number of independent NFT buyers exceeded 1 million in May, but by November, it was only 662,000, indicating that while the market shows signs of recovery, the number of retail investors has actually decreased. This surge is more the result of large players and institutional funds entering the market, and whether new blood will be injected into the NFT market in the future remains to be seen.
'Is NFT making a comeback? Trading volume of four major blue chips surges, and the floor price of 'this project' skyrockets by 75%' was first published in 'Crypto City'.
