The non-fungible token (NFT) industry has predominantly experienced a decline in trading activity since the beginning of the year, but the market appears to be currently undergoing a noteworthy and positive transformation. Based on on-chain data, one of the major collections that seems to be leading this recent surge is the CryptoPunk non-fungible tokens.
CryptoPunks, a series of 10,000 unique pixel art characters on the Ethereum blockchain, gained widespread acclaim and fervent collector attention for a few years after its inception. However, interest in the collection has been relatively low in the past few months, coinciding with the widespread downturn in the NFT market.
Trading Volume Surge From $200,000 To $3,000,000 In One Week
In recent weeks, the CryptoPunks collection has been garnering the attention of investors and collectors. According to data from blockchain analytics firm IntoTheBlock, there has been a substantial surge in the trading volume of the Cryptopunks NFT collection, escalating from $200,000 to well over $3 million in the previous week.
The Cryptopunks NFT collection’s trading volume has increased significantly in the past week, from $200k to over $3M!
????https://t.co/S0YGJVdlD7 pic.twitter.com/ahBV646GKM— IntoTheBlock (@intotheblock) November 11, 2023
The trading volume is a crucial metric that helps measure market interest, market activity, and liquidity of a non-fungible token collection. As such, high trading volumes often suggest rising liquidity and increasing demand for NFTs in a collection.
Furthermore, the surging trading volume of the CryptoPunks collection has translated to a drastic 1,000% increase in its sales volume. Based on data provided by CryptoSlam, the collection ranks as the highest Ethereum-based NFT collection by sales volume.
Another data point that points to the rising demand for CryptoPunks’ non-fungible tokens is the growing floor price. As of this writing, the NFT collection boasts a floor price of 59.4 ETH, reflecting a roughly 27% increase in the past seven days.
NFT Industry Witnesses Boom As Crypto Bull Market Approaches
The recent interest in the CryptoPunks collection highlights the resurgence of the broader NFT market. According to data from IntoTheBlock, the daily trading volume of Ethereum-based NFTs crossed $30 million on Thursday, November 9, for the first time since early July.
Volume traded by NFTs on Ethereum | Source: X/IntoTheBlock
Interestingly, the timing for this favorable momentum shift couldn’t be any better, as the broader cryptocurrency market has also been experiencing a climate shift in the past few weeks. Bitcoin, the premier cryptocurrency fueling the current positive sentiment, is up by 37% in the past month.
If the highly-anticipated bull market does arrive, the NFT industry could capture a considerable chunk of the fresh money inflow, as recent on-chain data are pointing to a brewing bullish run for most non-fungible tokens.
Cryptocurrency total market cap on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from iStock, chart from TradingView
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Author: Opeyemi Sule
