In a surprising turn of events, Non-Fungible Tokens (NFTs) have seemingly risen from the ashes, experiencing a 23% surge in marketplace volume during October. This notable increase, from approximately $210 million in September to $260 million last month, indicates a reversal from the previous month’s dip and hints at a potential resurgence in the NFT space.
OpenSea Maintains Dominance, Blur Trails in Second Place
OpenSea continues to hold a stronghold in the NFT market, boasting over 75% of the user market share. In contrast, Blur secures the second position with a 20% share. However, the majority of trading volume is concentrated on Blur, attributed to the ongoing Season 2 incentives, set to conclude on November 20.
NFTs: Altcoins with a Creative Twist
With the broader cryptocurrency market recovering, NFTs are often referred to as “altcoins with a picture,” presenting a unique and creative dimension to the crypto landscape. These digital assets are seen as a higher beta bet against major cryptocurrencies like BTC, ETH, and SOL.
Established blue-chip NFTs such as Bored Ape Yacht Club (BAYC) and CryptoPunks exhibit positive trends, with a 19% and 8% increase, respectively, over the past 30 days. However, mid-cap Profile Picture (PFP) collections, including Azuki and Milady, outshine the blue-chip counterparts with impressive gains of 44% and 43.7%, respectively.
Caution Advised in NFT Trading
While the current uptrend in NFTs appears promising, experts advise caution due to the market’s low liquidity environment and its highly player-versus-player (PvP) nature. The lack of new retail entry implies that existing capital is circulating within these collections, emphasizing the speculative nature of NFT trading.
Despite the speculative nature of NFTs, the current upward trajectory, if sustained with a gradual increase in trading volume alongside floor prices, could signal a gradual rekindling of interest in the NFT market. Investors and enthusiasts alike are keeping a watchful eye on this space as it navigates its way through a potential revival.