The non-fungible token (NFT) market, which had seen a significant downturn for much of the year, is exhibiting signs of a potential resurgence, according to a recent report from Galaxy Research.
NFT trading volumes, which had been steadily declining, began to reverse course in November, coinciding with the U.S. elections and a broader rally in the cryptocurrency market. This uptick has been particularly noticeable in the past month, with weekly trading volumes surpassing the $100 million mark for the first time since May. On December 2nd, volumes reached a peak of $172 million.
The primary driver of this resurgence has been increased activity within the top 25 NFT collections by market capitalization. Leading marketplaces such as OpenSea, Blur, and Magic Eden have witnessed a surge in participation, with Blur and OpenSea accounting for 60% and 27% of the total volume over the past 30 days, respectively.
One notable trend within the NFT market has been the strong performance of NFTs linked to the Pudgy Penguins ecosystem. The floor prices for both Pudgy Penguins and Lil Pudgys collections have experienced significant growth, surging by 206% and 265%, respectively.
Also Read: Yuga Labs Acquires Tokenproof’s Tech Team to Boost NFT Accessibility and Utility in Web3
While this recent uptick is encouraging, it remains to be seen whether it will sustain momentum in the long term. Factors such as broader economic conditions, regulatory developments, and evolving consumer preferences will continue to shape the trajectory of the NFT market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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