Recent transactions in the NFT market, including purchases of rare collections, have led to significant growth in capitalization and interest in the market.
Reasons for NFT Market Growth
In the past month, the floor price for leading NFT collections, like CryptoPunks, surged by 29%, reaching around 51 Ethereum (approximately $190,000). Collections such as Pudgy Penguins and Bored Ape Yacht Club saw increases of 66.7% and 9.8% respectively. As a result, the total capitalization of the NFT market grew by 66%, hitting a $6 billion milestone.
Comparison with Historical Performance
While the current recovery of the NFT market looks impressive, it has not reached the levels seen in 2021 and 2022 when market valuation soared to $16.6 billion. During this time, some major platforms changed their strategies to adapt to evolving conditions. For example, the X2Y2 platform, once notable for its substantial transaction volume, ceased operations after experiencing a sharp decline in activity.
Influence of Existing NFT Collections
An increase in baseline prices of dominant NFT collections appears to stimulate further developments in the market. Esteemed collections like CryptoPunks often act as indicators of market sentiment and demand. According to CoinGecko, the NFT market witnessed substantial growth over the past month.
Although the current achievements in the NFT market seem modest compared to previous peaks, quick baseline increases and significant purchases have rekindled interest. Investors and enthusiasts need to stay aware of market trends to adapt to an uncertain landscape.
