It’s hard to get past the fact that the cryptocurrency market has had a disastrous start to the week. At the same time, the majority of the largest non-fungible token collections (NFTs) have seen a huge explosion in trading volumes over the past 24 hours.
BAYC, Cryptopunks and Sorare up over 100%
As the week began, the price of Bitcoin (BTC) broke its last supports from below, dragging the entire cryptocurrency market down with it. At the time of writing, the queen of cryptocurrencies is trading at $22,500, down 20% from the last weekly close.
Meanwhile, one part of the crypto ecosystem seems to be holding up well: non-fungible tokens (NFTs). While cryptocurrency prices are in the red, trading volumes of the major collections have seen a rise of tens of percent since the beginning of the week.
According to CryptoSlam’s data, 18 of the top 20 collections on the market are up over the past 24 hours. For example, the blockchain game Sorare and the Bored Ape Yacht Club (BAYC) and CryptoPunks collections are up more than 100%.
Fig 1: Trading volume of major non-fungible token collections (NFTs)
Leading the way was Bored Ape, which saw over $7 million in sales volume on the day yesterday. Interestingly, it was Yuga Labs’ 3 collections that led the way, namely BAYC, Mutant Ape Yacht Club (MAYC) and Otherdeed.
An increase to be put in context
While this rise may seem positive for the NFT market, it is important to put it into context. First of all, the floor prices of the main collections have fallen drastically over the last few days.
The Bored Ape has seen its floor price drop from over 150 Ether (or over $400,000 at the time) to just 80 Ether today (or under $90,000). This is most likely the reason why trading volumes have exploded, as users want to take advantage of the low prices currently offered by the market.
Moreover, it is important to look at these statistics in a larger time frame. Indeed, the Bored Ape collection has seen a good increase and generated $7 million in sales in one day, but this is still relatively low compared to previous months.
Fig 2: Bored Ape Yatch Club (BAYC) Collection daily trading volume
It will be interesting to watch this trend over the next few days and see if the NFT industry will continue to move against the grain of the cryptocurrency market.
