Ethereum NFT market sees resurgence – What prompted the boom?
- There has been an increase in demand for Ethereum-based NFTs.
- General NFT trading activity has picked up pace in the last month.
The Ethereum [ETH] non-fungible token (NFT) market experienced a significant surge in trading activity on 3rd December, reaching a daily transaction volume of $34.786 million.
This marks the highest daily volume for NFTs minted on the Ethereum network since 29th June, according to data from a Dune Analytics dashboard by Hildobby.
Investors are picking up more digital collectibles
Following an extended period of low interest in this asset class category, the last month has seen a significant uptick in NFT trading activity.
As of this writing, the general NFT market capitalization was $8.7 billion. Data from NFTGo showed it has grown by over 48% in the last 30 days due to the surge in demand for NFTs.
Information from the data provider showed that the last time the NFT market capitalization was this high was in June.
Likewise, NFT sales volume has totaled $585 million in the last month, growing by 110%.
Therefore, the uptick in daily trading volume recorded on Ethereum mirrors the general growth in NFT trading activity in the last month.
In November, the sales volume of Ethereum-based NFTs was $348 million. This represented a 108% month-over-month (MoM) growth from the $167 million recorded in October.
AMBCrypto found that this was the first time since February that Ethereum would record an MoM uptick in NFT sales volume.
In February, the chain recorded a monthly sales volume of $949.49 million. However, as sentiments grew poorer in the first and second quarters of the year and investors moved away from speculative asset classes, NFT trading activity plummeted.
Between February and October, NFT sales volume on Ethereum fell by 82%, data from CryptoSlam showed.
There is a catch
Interestingly, despite the surge in general NFT trading activity on the Ethereum network, the floor prices of its leading projects, Bored Ape Yacht Club (BAYC) and CryptoPunks, have declined in the last month.
At press time, an NFT from the BAYC collection cost 30.15 ETH, having declined by 6% since 10th November.
Realistic or not, here’s ETH’s market cap in BTC terms
Market participants have taken advantage of the steady fall in BAYC’s floor price, with sales volume increasing by more than 50% in the past month.
Regarding the CryptoPunks collection, its floor price has also registered a 3% decline since 13th November, per data from NFT Price Floor.