NFT Market Remains Bearish Despite Widespread Crypto Rally

Despite a widespread rally that has pushed the prices of digital assets to levels not seen in years, the NFT market is still mired in a bear market.

In the past week, large caps such as Bitcoin have risen by up to 22%, from $28,000 to $35,000 on Monday.

Bitcoin, in turn, pushed the majority of the industry higher, with only two assets—Huobi’s HT and Trust Wallet’s TWT—in the top 100 by market capitalization declining over the past week.

Despite the widespread rally, the NFT sector has not risen significantly.

According to data from Nansen, floor prices—the lowest price at which a single NFT from a given collection can be purchased—for significant projects like CryptoPunks and Pudgy Penguins have decreased by 4% and 5%, respectively, over the past week.

The Nansen NFT-500 index continues to decline, with a current value of 308 compared to a yearly high of 1,700 reached in October.

The total number of buyer addresses (7,200) and the number of first-time buyers (920) reached annual lows on October 24.

However, some metrics for the sector are encouraging.

The overall trading volume appears to have reached a nadir. For the week ending October 9, Ethereum mainnet volumes reached an annual low of 29,742 ETH, or less than $50 million.

Since then, the volume has increased, with over $85 million worth of NFTs traded or created during the week ending October 23.

In addition, there has been an increase in “active”projects”—collections whose sales surpass benchmarks such as 10, 100, and 1,000 ETH. On October 8, there were 41 collections for active projects, compared to 80 today.

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