Frozen NFT market sees a ray of sunshine, more inside
- NFT sales in November marked a threefold increase from October.
- The buying pressure trumped selling pressure in the last two months.
The worst of the Non-fungible Token [NFT] market might be behind us, as November witnessed a dramatic surge in sales volume after months of progressive declines.
Is the NFT winter over?
AMBCrypto accessed Cryptoslam’s data and discovered sales worth $915 million during the last month. Not only was this a nearly threefold increase from October, but it was also the highest monthly sales figure in 2o23 since March.
The uplift in trading activity came as a ray of sunshine after a long and bitter NFT winter. As evident, NFT sales have been on a downhill after peaking in February at $1.2 billion.
The decline intensified right through the second and third quarters. Sales in September were barely $300 million, the lowest since the NFT bull market of 2021 and early 2022.
Having said that, the November rebound raised the spirits of NFT enthusiasts, fueling anticipation of sustained growth in the days ahead.
Another important aspect of the turnaround was the increase in the number of buyers. Over the last two months, more traders purchased NFTs than sold them, AMBCrypto spotted in the graph above.
If anything, this was suggestive of a changing market structure driven by high demand.
The floor price of marquee collections jump
Blue-chip NFT collections echoed the upbeat market sentiment. CryptoPunks, the collection with the largest market cap, saw its floor price surge 33% to 56.8 Ether [ETH] as of this writing, according to NFT Price Floor.
As is well known, the floor price is the lowest sale price of any NFT in a particular collection. The more popular the NFT project gets, the higher the floor price.
Another essential barometer of the NFT market — Bored Ape Yacht Club [BAYC] — also appeared to be thawing. The floor price rose from 24 ETH in mid-October to 30 ETH as of this writing, a gain of 25%.
While the floor price still pales in comparison to the 2022 peaks or even the yearly highs of January, the recovery was welcomed by proponents.
Additional data from CryptoSlam highlighted a buying-dominated surge in sales numbers for BAYC.
It remains to be seen if the latest surge is just a reaction to the broader market optimism in Web3 products, or if it is the commencement of a long bull market, reminiscent of the 2021-22 period.