Non-fungible tokens (NFTs) are on the rise, and for those obsessed with rising prices, the market may appear to be booming. But the overall activity tells a different story.
Leading the rally are Bored Ape Yacht Club and Pudgy Penguins. The floor price, the lowest possible acquisition cost, has increased by double digits in recent weeks, and the token has posted double-digit gains. Still, a comeback is unfolding with far fewer buyers.
Pudgy Penguin has more than 5 floors $ETHup more than 20% for the week, with 201 sales and nearly 1,000 sales. $ETH Volume over the past seven days confirms this move. BAYC’s floor has risen 81% in the past 30 days, making a sharp recovery from depressed levels.
The lowest price is an important indicator to follow. in $NFT In a collection, the lowest price is the lowest priced item currently on sale. If the lowest priced stubby penguin on the market is listed at 5.38 Ether ($ETH), that becomes the collection floor. A rising floor usually means buyers are willing to pay to get in. A falling floor usually means holders are rushing towards an exit.
However, behind the rise in aggregate prices, the structure of the market tells a different story, as widespread participation has declined.
According to CryptoSlam, Global $NFT Revenue fell from $304 million in February to about $175 million in April, and total transaction value and active users both fell by nearly half.
Meanwhile, the average sales price more than doubled from the previous month, rising from $30.60 in March to $67.38 in April. These two data points describe the same phenomenon from opposite sides. Rather than widespread demand returning to the market, a small pool of capital is concentrating on high-value deals on premium collections.
Even among excellent companies, the quality of demand varies. Pudgy Penguins has a relatively high number of trades and rising prices, indicating continued activity. In contrast, collections like CryptoPunks have recorded similar weekly trading volumes with far fewer trades, suggesting that a few large trades have a huge impact on price.
Broad market signals remain mixed. According to CryptoSlam, wash trading still accounts for around 50% of total trading volume and total trading profits remain negative, indicating that despite the recent recovery, many participants are still underwater.
Taken together, the data shows that the market is stabilizing, but not yet expanding. Prices are rising, but participation is falling and activity is concentrated in a small number of collections.
at the same time, $ETH It is up about 18% over the past month, and BTC is up almost as much. Some of what looks like $NFT-A particular rally is simply a beta of a risk-on move across cryptocurrencies, and a collection of blue chip chips includes prices $ETH Catch updrafts along with everything else.
