NFT Market Fluctuations and the Rise of Meme Coins: A Closer Look
The NFT market has been going through a period of uncertainty and fluctuation, leading to a sense of cautiousness among participants. Big projects like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) have experienced significant declines in floor prices, indicating a temporary exit of people from the NFT space. Additionally, the Bend DAO hedge strategy has gained attention as a risk mitigation technique, and Blur aims to establish itself as a leading NFT marketplace. The rise of meme coins has also attracted liquidity away from NFTs, but concerns about sustainability and reliability loom. Furthermore, Elon Musk's influence in the crypto space cannot be overlooked.
In our monthly NFT Report, we are highlighting the key takeaways in May. Below are some of the main points demonstrating the sentiment around NFTs and what trends we can watch out for.
NFT Report: October Edition
The NFT market has felt the effects of “Uptober,” as sales volumes have increased 21% in the last 30 days, resulting in a market cap of $2.18 billion. Blue-chip projects such as the BAYC collection saw an 81.2% increase in volume the last month, similar to Pudgy Penguins, which had a 51.2% increase in volume. The increase in price and volume can be partly attributed to the general price increase of the crypto market, with Bitcoin and Ethereum up 24.7% and 7.26%, respectively, in the past month. Moreover, when Pudgy Penguins started selling physical plush toys in Walmart, one of the most successful retail stores, interest surged, and so did the floor price of the NFT.
NFT Report: September Edition
The NFT market continues to face low sentiment as sales volumes have dropped 29% in the last 30 days, and mainstream media is reporting NFTs as “worthless.” Covered by The Guardian, Cointelegraph, Yahoo, The Hindu Times, and more, a recent study conducted by dappGambl, which analyzed data from NFT Scan and CoinMarketCap, found that 95% of NFT collections, equivalent to 23 million individuals, hold NFTs with no market value – as 69,795 out of 73,257 collections have a market cap of 0 Ether.