The non-interchangeable token (NFT) sector has predominantly witnessed a slump in trading activity since the start of the year. However, the market is currently undergoing a notable and optimistic metamorphosis. As per on-chain data, the CryptoPunk non-fungible token is one of the prominent collectibles leading this recent upsurge.Thank you for reading this post, don't forget to subscribe!
Years after its creation, CryptoPunks, a set of 10,000 unique pixel art characters on the Ethereum blockchain, garnered widespread acclaim and fervent attention from collectors. Nevertheless, amid the widespread deceleration in the NFT market, interest in the collection has been relatively subdued in recent months.
A surge from $200,000 to $3,000,000 in one week
In recent weeks, the CryptoPunks collection has been drawing the interest of investors and collectors. The trading volume for the CryptoPunks NFT collection has witnessed a significant surge, escalating from $200,000 to over $3 million in the past week, according to data from blockchain analytics firm IntoTheBlock.
The trading volume of the CryptoPunks NFT collection has surged significantly in the past week, from $200k to $3M!
-intotheblock (@intotheblock) 11 November 2023
Trading volume serves as a crucial metric to gauge market interest, market activity, and the liquidity of non-fungible token collections. Hence, elevated trading volumes often indicate heightened liquidity and escalating demand for NFTs in collections.
Furthermore, the substantial surge in the trading volume of the CryptoPunks collection has resulted in a massive 1,000% upturn in its sales volume. Based on data provided by CryptoSlam, the collection holds the top rank as the highest Ethereum-based NFT collection by sales volume.
Another indicator pointing towards the growing demand for CryptoPunks’ non-fungible token is the ascending floor price. At present, the minimum value of the NFT collection stands at 59.4 ETH, signifying an increase of around 27% over the past seven days.
NFT sector witnesses an upturn as crypto bull market looms
The recent interest in the CryptoPunks collection underscores the revival of the broader NFT market. According to data from IntoTheBlock, the daily trading volume of Ethereum-based NFTs surpassed $30 million on Thursday, November 9, for the first time since the start of July.
Volume traded by NFTs on Ethereum | Source: x/intotheblock
Interestingly, the timing of this favorable momentum shift couldn’t be more opportune, as the broader cryptocurrency market has also been undergoing a change in climate over recent weeks. Bitcoin, the leading cryptocurrency propelling the current positive sentiment, has surged by 37% over the past month.
If the much-anticipated bull market materializes, the NFT industry could attract a substantial influx of fresh capital, as recent on-chain data is indicating a bullish trend for most non-fungible tokens.
Total Market Cap of Cryptocurrencies on Daily Time Frame | Source: Total Chart on TradingView
Featured image from iStock, chart from TradingView