Despite a widespread rally that has taken digital asset prices to levels not seen in years, the NFT market remains stubbornly stuck in a bearish trend.
In the last week, majors like bitcoin have risen as much as 22%, rising from $28,000 to a high of $35,000 on Monday. Bitcoin, in turn, dragged much of the industry up, with only two assets (Huobi's HT and Trust Wallet's TWT) in the top 100 by market cap in the red for 7 days, according to CoinGecko.
However, despite the widespread rally, the NFT sector has largely failed to grow.
According to data from Nansen, floor prices (the lowest price at which a single NFT can be purchased for a given collection) for major projects like CryptoPunks and Pudgy Penguins have dropped in 7 days, falling 4% and 5% respectively. .
The Nansen NFT-500 Index continues to decline, currently standing at 308 from a yearly high of 1,700 set in October.
On October 24, both the total number of buyer addresses (7,200) and first-time buyer addresses (920) set yearly lows.
However, there are some metrics that look promising for the sector.
Overall trading volumes appear to have bottomed out. For the week ending October 9, volumes on the Ethereum mainnet hit a yearly low of 29,742 ETH, or less than $50 million. Since then, volume has started to increase, and in the week ending October 23, 47,369 ETH in NFTs worth over $85 million were traded or minted.
Additionally, there has been an increase in “active projects” – collections with sales exceeding benchmarks such as 10, 100, and 1000 ETH. On October 8, active projects hit bottom with 41 collections, up from 80 today.
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