The NFT market has not experienced another massive bull market like its 2020-2021 cycle when prices reached all-time highs as the world became interested in their profit potential and value proposition.
However, the crypto market’s excitement about Donald Trump’s win in the recent Presidential election may be the catalyst that this segment of the blockchain world needs once again to draw some attention from investors.
CryptoPunks See an Increase in Trading Volume and Floor Price
The resurgence of CryptoPunks, considered by many the most prestigious collection of NFTs, could be interpreted as an early sign that NFTs could be gearing up to make a comeback.
This Ethereum-based project has experienced a spike in trading volumes in the past few days while their floor prices are also increasing.
According to data from CryptoSlam, trading volumes for this collection have doubled since election day, reaching a daily total of $3.3 million. Meanwhile, their floor price – the minimum amount that collectors would be willing to pay for one NFT – exceeded $100,000 recently.
This is the first time that the floor price has exceeded this threshold since June this year. Moreover, new owners have also been entering the space with the number of unique wallets holding one of these NFTs increased lately to an all-time high of 3,793.
Analysts indicate that investors could be flocking to the market with the expectation that there will be some renewed interest in these assets in a crypto-friendly administration. Trump’s vow to push forward comprehensive regulation for the sector could benefit the market for non-fungible tokens (NFTs) as well and premium quality collections like CryptoPunks may attract the most interest from investors initially.
“CryptoPunks is one of the oldest and most notable NFT collections. The 10,000 piece collection was initially claimable for free on the Ethereum blockchain in 2017, later growing to an all-time high floor price of more than $400,000 in November 2021,” an article from Decrypt noted.
Doodles Collaboration with McDonald’s Interpreted as Sign of NFT Comeback
Another prominent NFT project that has seen a boost in activity is Doodles. The colorful, cartoon-inspired collection recently announced a collaboration with fast-food giant McDonald’s, which will feature Doodles characters on over 100 million cups starting November 18th.
Meanwhile, another NFT project called Doodles recently made the headlines as its cartoon characters will be featured on millions of McDonald’s cups starting on November 18th.
Doodles have become appealing to mainstream investors and collectors as the project has managed to bring on board key celebrities and public figures to their marketing team including Pharrell Williams, the popular American musician who joined their ranks in 2022 as chief brand officer. Doodle NFTs saw their floor price increase by nearly 50% lately to nearly 2.4 ETH.
Moreover, their YouTube channel has three music videos that feature popular artists including Coi Leray and Swae Lee. These collaborations have raised awareness and may be the reason why McDonald’s was drawn to the project in the first place.
The McDonald’s collaboration is seen as a significant step in Doodles’ efforts to bring NFTs to the masses and could pave the way for increased mainstream adoption of digital assets.
Other Signs: Blur Proposes 0.5% Fee for its Platform
Another sign that the NFT market could be staging a comeback is the decision made by the NFT marketplace Blue to introduce trading fees for all transactions made within its platform.
The governance proposal suggests a 0.5% protocol fee an all trades apart from the minimum 0.5% royalty fee it requires for creators.
These changes come as Blur has become a dominant force in the NFT trading space with a 45% share of the total trading volume in the past week. Meanwhile, OpenSea has experienced a decline in its market share.
Traders may be incentivized by Blur’s proposal to focus on long-term holding periods rather than trying to profit from short-term price swings. Experts see it as a sign that Blur is seeing increased volumes and interest for NFTs and wants to make bank on this uptick.
However, the community may opt to wait until there are much clearer signs of a recovery before making any changes to the existing fee structure.
Teng Yan, head of NFT research at Delphi Digital, posted in Blur’s forums: “I would suggest waiting for NFT volume and interest to show signs of returning first. When prices are rising, users will not be as turned off by fees + fee generation will be significantly more substantial compared to in today’s low-volume environment.”
OpenSea Could Be Gearing Up to Launch its Widely Awaited Airdrop
For long, crypto investors have been awaiting the launch of the official OpenSea token. There has been speculation lately that the platform could take advantage of the launch of the next version of its trading interface to perform an airdrop.
The marketplace has not confirmed any of these rumors but, considering the tailwind provided by the outcome of the Presidential election to the crypto market as a whole, they may figure that this is the perfect time to do it.
Developers have also pointed to the inclusion of XP points in the new version as an indication that an airdrop could be around the corner as blockchain protocols typically measure user engagement by using these markers.
It Seems Too Early to Tell if These Are Signs of a Comeback
NFTs are still a relatively immature corner of the market and it’s unknown whether they will ever return to their former glory. Then again, Trump has direct experience with selling NFTs himself so his administration may take a closer look at the market.
The NFT market has struggled to regain the momentum it experienced during the height of the 2021 crypto boom. Factors such as oversupply, high gas fees on Ethereum, and fading mainstream interest have all contributed to a decline in trading volumes and prices.
“We’ve all felt it—the ebb and flow of different collections gaining and losing prominence. Profile Picture (PFP) NFTs like Bored Ape Yacht Club (BAYC) are experiencing a downturn, and it seems like there are several factors at play here,” members of the blockchain company OneSafe commented in a blog post.
While this latest spike in the trading volumes and prices of popular collections generates curiosity, more evidence is needed before reaching the conclusion that the market is prepared to stage a full-blown comeback. Investors need to stay vigilant to identify further signs and confirm that the NFT market is ready to get on board with the overall excitement that the blockchain sector is experiencing following Trump’s win.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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