The world of non-fungible tokens (NFTs) appears to be experiencing a resurgence, leaving some to wonder if it’s the real deal or merely a Halloween costume. Recent events, including Bitcoin’s strong performance in “Uptober,” impressive art sales in NFTs, and the conclusion of Season 2 rewards for Blur, have reignited interest in NFTs.
While platforms like Friend.tech kept traders occupied in recent months, concerns about security led to a drop in trading volume, prompting traders to explore other options. As a result, attention shifted back to NFTs and other social finance (SoFi) platforms like Stars Arena and New Bitcoin City.
The NFT market began to pick up momentum on October 9 when Blur announced that point rewards farming would end on November 20. Further excitement was generated by fake news of Bitcoin ETF approval on October 16, followed by legitimate reports on October 20 indicating that ETF approvals were imminent. Positive news stories have played a significant role in driving NFT activity.
In the past week, this momentum has led to multiple NFT collections, such as Michelin and Trip.com, selling out their primary sales, a noteworthy achievement in the bear market. Equally impressive is the performance of Zynga’s SugarTown Oras, which maintained the value of its NFTs even after their art was revealed, a rare feat in the NFT world.
This resurgence in momentum has also extended to the global NFT markets. Last week marked the second consecutive week of increased NFT sales, a trend not seen since early August. Sales have risen by 25% from their yearly low of $55 million just two weeks ago. Wash sales also saw a boost, with over $33.5 million in sales, the highest weekly total since August 14 and a 99% increase from early October.
Despite these positive signs, NFT traders should exercise caution, especially considering that Bitcoin has experienced declines in November in four out of the past five years. Nonetheless, the active and engaged NFT community remains ready to embrace opportunities, and the blockchain is poised for a promising year in 2024.
In summary, while it may be too soon to declare that NFTs are back, the resurgence in the market suggests that a thaw is on the horizon, driven by the hot crypto market and positive news catalysts.
