Ethereum liquidity spills over, trapped NFTs have hope.
Written by: 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 signs of abnormal movement, with token monthly return rates reaching 50%. The floor prices of blue-chip NFT collections have rebounded by over 30% within 7 days, and the NFT sector seems to be showing a warming trend. However, compared to the price increases of Ethereum ecosystem NFTs, Solana and BTC ecosystem NFTs still perform relatively flat.
This article will give you a quick overview of recent Ethereum sector NFT data and analyze the reasons for the rebound.
Positive data for the Ethereum NFT sector
From the overall trend of the NFT sector, according to data from Sosovalue, the NFT sector has performed well in the past month, with overall data gradually climbing. The monthly return on investment can reach 50%, but compared to the nearly 100% monthly return rates of popular narratives like PayFi, RWA, and AI, it still does not belong to the mainstream narratives of this round of speculation.
Source: https://sosovalue.com/zh/assets/cryptoindex/NFT
According to data from CryptoSlam, the overall sales volume of NFTs has shown a rebound trend. In October this year, the total trading volume of NFTs started to grow, breaking the trend of declining monthly sales for seven consecutive months, reaching $356 million, an increase of 18% month-over-month. Additionally, the number of NFT transactions has gradually increased, with October recording 7.2 million transactions, a 42% increase from 5 million in September. In November, NFT sales once again achieved significant growth, increasing 57.8% from October to over $562 million. Sales on the Ethereum network exceeded $216 million, up 12% from October.
Source: https://www.cryptoslam.io/nftglobal?timeFrame=month&headerPeriod=30d
Among them, CryptoPunks is leading the NFT market, with 30-day sales exceeding $49 million, a nearly 400% month-over-month increase. Additionally, according to data from Blur, the floor prices of blue-chip NFT collections have rebounded by over 30% within 7 days. The floor price of the Bored Ape Yacht Club increased by 72% over 7 days, and the floor price of Pudgy Penguins rose by 29%; the floor price of the Mutant Ape Yacht Club increased by 97% in 7 days.
Compared to the warming of the ETH NFT sector, the Solana NFT sector still performs relatively flat. 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. 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 seen significant increases.
Source: https://www.cryptoslam.io/indexes/cseth
Ethereum recovery, liquidity gradually spilling over
Since the Ethereum ETF hype began, as the net inflows into the ETF continue to rise, the overall Ethereum ecosystem sector is slowly warming up. According to data from Sosovalue, the number of days and amounts of net inflows into the Ethereum ecosystem are continuously increasing. The price of ETH has also climbed, with a nearly 45% increase over the past month, rising from around $2500 at the bottom to $3700. The staking sector Puffer has doubled in the past week, and EIGEN's weekly increase has also reached 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 spilling over. According to data from The Block, the monthly trading volume on the Ethereum chain has gradually increased over the past three months, with November's trading volume exceeding March's peak this year, reaching $183.7 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 spillover of liquidity, the overall prices in the NFT sector remain at relatively low levels historically. Users who still hold NFTs long-term may be less likely to choose to sell in the early stages of the startup. From the perspective of circulation and supply, the NFT market may have certain potential. Furthermore, with ME TGE approaching, predictions from Truemarkets suggest that market NFT attracting purchases from V God and other actions have also garnered significant attention.
However, whether the NFT market can rise again relies solely on short-term liquidity spillover is not sustainable. Further innovation, matching demand, and implementing real application scenarios are necessary for effectiveness.
