December 7, 2023
By Sharan Kaur Phillora
The non-fungible token (NFT) market is experiencing a resurgence, mirroring the upward trend in cryptocurrencies like Bitcoin, Ether, Solana, and Polygon. This revival is highlighted by the increasing prices of NFT collections associated with these digital currencies.
Here’s what we know:
Recent market data reveals a significant increase in total NFT sales volume for November 2023, reaching $1,020,914,300, a 129% increase month-over-month. This surge is primarily driven by the bullish sentiment in the broader market, particularly with the rise of the Bitcoin Ordinals token (ORDI).
ORDI experienced a notable jump of 35% over the past 24 hours, signifying increased investor interest and market activity around Bitcoin-based NFTs. This uptick is particularly significant considering the broader context of the NFT market’s resurgence.
The competition among NFT marketplaces has intensified, especially since the onset of the royalty war between OpenSea and Blur. This has led to a sharp decline in overall marketplace fees, further energizing the market. Despite some illiquid NFT projects experiencing a decline in floor prices, the overall market shows resilience, with top-performing projects like Bored Ape Yacht Club, Mutant Ape Yacht Club, and CryptoPunks continuing to dominate the market.
However, it’s not all positive news. The NFT market has seen a decline in interest and a drop in base prices for some prominent collections. For example, the Doodles collection experienced a significant decrease of 90% in its base price, and the Moonbirds collection saw a drop of 94% in its base price.
In response to market volatility, consumers are increasingly seeking rare and tangible NFTs that offer long-term value. This shift is influencing the kinds of projects gaining traction in the market. Additionally, the sector is facing growing regulatory attention, with actions initiated by bodies like the Department of Justice and the Securities and Exchange Commission to maintain market integrity.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
