NFTs Are Making a Comeback: Crypto Boom Drives Market Growth
The NFT market is bouncing back, fueled by the broader recovery of the crypto market in November.
Market on the Rise
According to CoinGecko, the total NFT market cap hit $8.8 billion in December, up 17.3% in just a week. Trading activity has also surged, with daily volumes across blockchains jumping nearly 48% in the past 24 hours.
In November, NFT sales reached $562 million— the highest since May, when sales peaked at $600 million. However, the number of unique buyers dropped significantly to 662,000, compared to over 1 million in May.
Blue-Chip NFTs Lead the Charge
Top NFT collections, known as "blue-chips," continue to dominate the market. According to CoinGecko's NFT Heatmap:
- CryptoPunks had $49 million in trading volume in November, a 392% increase from October, despite only 388 transactions.
- Bored Ape Yacht Club (BAYC) gained 75.79% in value over the week, with its floor price rising to 21.27 ETH ($79,727).
- Pudgy Penguins showed a weekly growth of nearly 30%, maintaining a 14.869 ETH ($55,758) floor price.
- Azuki also saw gains, with its floor price increasing by 8.61% in just one day, now at 5.799 ETH.
These three collections—CryptoPunks, BAYC, and Pudgy Penguins—account for 73% of all market activity.
Ethereum and Marketplaces Dominate
Ethereum remains the most active blockchain for NFTs, with $216 million in sales in November. Bitcoin NFTs are also gaining traction, with a 99.44% monthly increase, reaching $186 million in sales.
Among NFT marketplaces:
- Blur led with $271 million in trades, thanks to its smaller but highly active user base (38,000 traders).
- OpenSea retained a broader appeal, with 188,000 active traders completing over 2 million trades.
Challenges Ahead
Despite the recent rebound, the overall NFT market is far from its former glory. The CryptoSlam 500 NFT Index, which tracks 500 smart contracts across 11 major blockchains, has fallen by 53.77% from its peak of 2,494.74. It now sits at 1,135.04, reflecting a market still in recovery.
While new innovations and interest from institutions provide hope, the NFT space has yet to regain the explosive growth that once captured mainstream attention.
Conclusion
The NFT market is showing signs of life, driven by crypto's resurgence and blue-chip collections' performance. However, the road to recovery is still long, with the market striving to find stability and attract new buyers.
