Author: Shaofaye123, ForesightNews
Recently, the Non-Fungible Token (NFT) trading platform Blur has seen consecutive weekly increases, with a monthly increase of nearly 80%. The NFT sector has shown signs of activity, with the token's monthly return rate reaching 50%. The floor prices of blue-chip NFT series have risen by more than 30% within 7 days, indicating a potential recovery trend in the NFT sector. However, compared to the growth of Ethereum-based NFTs, NFTs in the Solana and BTC ecosystems have remained relatively flat.
This article will provide you with a quick overview of the recent data on the Ethereum NFT sector and analyze the reasons behind the recovery.
Positive Data in the Ethereum NFT Sector
Looking at the overall trend of the NFT sector, according to SoSovalue data, the NFT sector has performed well in the past month, with the overall data gradually rising. The monthly return on investment can reach 50%, but compared to the nearly 100% monthly return rates of the 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, the overall sales volume of NFTs has also shown a recovery trend. In October 2022, the total NFT trading volume began to grow, breaking the trend of seven consecutive months of decline in monthly NFT sales, reaching $356 million, an 18% increase from the previous month. Additionally, the number of NFT transactions has also been gradually increasing, reaching 7.2 million in October, a 42% increase from the 5 million transactions in September. In November, NFT sales volume saw another significant increase, growing 57.8% from October to over $562 million. The sales volume on the Ethereum network exceeded $216 million, a 12% increase from October.
Source: https://www.cryptoslam.io/nftglobal?timeFrame=month&headerPeriod=30d
Among them, CryptoPunks has led the NFT market, with a 30-day sales volume of over $49 million, a nearly 400% increase from the previous period. Additionally, according to Blur data, the floor prices of blue-chip NFT series have risen by more than 30% within 7 days. The floor price of Bored Ape Yacht Club has increased by 72% in 7 days, Pudgy Penguins by 29%, and Mutant Ape Yacht Club by 97%.
Compared to the recovery of the Ethereum NFT sector, the Solana NFT sector has remained relatively flat. According to CryptoSlam data, the CryptoSlam ETH NFT Composite Index, which measures the performance of the Ethereum NFT market, has risen by nearly 40% in the past three months. In contrast, the Solana NFT index has shown almost no fluctuation in the past three months, and has declined by 48% since the beginning of the year. The Solana NFT infrastructure projects TNSR and MPLX have also not seen any significant increases.
Source: https://www.cryptoslam.io/indexes/cseth
Ethereum's Recovery and Gradual Liquidity Spillover
Since the approval of the Ethereum ETF, the Ethereum ecosystem as a whole has been slowly recovering as the net inflow of the ETF continues to increase. According to SoSovalue data, the number of days and the amount of net inflow into the Ethereum ecosystem have been increasing. The price of ETH has also risen accordingly, with a 45% increase in the past month, from around $2,500 to $3,700. The re-staking sector, such as Puffer, has doubled in the past week, and EIGEN has also seen a 30% increase in the past week.
Source: https://sosovalue.com/zh/assets/etf/Total_Crypto_ETH_ETF_Fund_Flow?page=usETH
In addition to the recovery of exchange prices, on-chain liquidity has also gradually spilled over. According to The Block data, the monthly on-chain transaction volume of Ethereum has been gradually increasing over the past three months, reaching a peak of $183.7 billion in November.
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 of the NFT sector are at relatively low levels compared to historical levels, and users who have long-term holdings of NFTs may be less inclined to sell during the initial stage. From the perspective of circulation and supply, the NFT market may have some potential. Additionally, the upcoming Truemarkets prediction market NFT has attracted significant attention, including the purchase by Vitalik Buterin.
However, whether the NFT market can rise again, the temporary spillover of liquidity alone is not enough to sustain it. Further innovation, matching demand, and the implementation of real-world application scenarios are necessary for it to be effective.
