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As Bitcoin and Ethereum are experincing the coldest winter in recent times by plunging below their 2020 lows of US$20,000 and US$1,000 respectively, the NFT market is marching to a slightly different beat.
Tomorrow marks the first day of the year’s most anticipated NFT event – NFTNYC – and whilst the appetite for blue-chip cryptos is souring, the hunger for blue-chip NFTs is still visible.
At first glance, it would appear that NFT floor prices have not escaped the fallout. At the time of writing BAYC‘s floor price has fallen from its highest level of 142 ETH to 92 ETH, whilst Azuki is down from 31 ETH to a measly 9.4 ETH (although Azuki has problems beyond crypto winter). What’s more, with most leading NFT projects being traded with ETH, their dollar values have fallen even steeper due to ETH’s crash.
However, the trading volume for NFTs are telling a different story. CryptoPunks’ trading volume over the past 7 days has risen 324.67% and BAYC’s volume has surged 332.51% in just 24 hours. Eight of the top OpenSea NFT projects have seen over a 115% rise in terms of 24-hour sales volume.
Indeed, the NFT market appears to be showing resilience to the FUD – at least more so than cryptos themselves.
Even meme projects with zero utility such as Goblintown are outperforming some blue-chip rivals.
The strength behind the NFT market’s stability is a reflection on the strength of NFT communities. Those backing blue chip NFT projects such as BAYC appreciate the value of their long term prospects. A dampened market offers a cheaper entry price, without the risk of catching a falling knife. On the other end of the NFT market, communities are showing appreciation for candidly transparent projects such as Goblintown.
Either way, the NFT market is offering solace from the mayhem of crypto winter.