Since the beginning of the year, the non-fungible token (NFT) market has primarily seen a decrease in trading activity; however, the market now seems to be going through a notable and positive transformation. The CryptoPunk non-fungible tokens appear to be one of the main collections driving this recent upsurge, according to on-chain data.
For a few years after its launch, CryptoPunks—a collection of 10,000 distinct pixel art characters on the Ethereum blockchain—won critical praise and ardent collector interest. Unfortunately, the collection has not received much attention in recent months, which is in line with the general decline in the NFT market.
Investors and collectors have been taking an interest in the CryptoPunks collection in recent weeks. Data from blockchain analytics company IntoTheBlock indicates that the Cryptopunks NFT collection has seen a significant increase in trading volume, rising from $200,000 to well over $3 million in the previous week.
One of the most important metrics for assessing the liquidity, market activity, and interest in a non-fungible token collection is trading volume. High trading volumes, therefore, frequently indicate growing liquidity and a rise in the desire for NFTs within a collection.
Moreover, the CryptoPunks collection’s sales volume has increased dramatically by 1,000% as a result of the collection’s soaring trading volume. The collection is the highest Ethereum-based NFT collection by sales, according to data from CryptoSlam.
The increasing floor price is another indicator of the growing demand for CryptoPunks’ non-fungible tokens. The NFT collection has a floor price of 59.4 ETH as of this writing, which represents a roughly 27% increase over the previous seven days.
The resurgence of the NFT market as a whole is demonstrated by the recent interest in the CryptoPunks collection. For the first time since early July, the daily trading volume of Ethereum-based NFTs surpassed $30 million on Thursday, November 9, according to data from IntoTheBlock.
It’s interesting to note that this positive momentum shift is coming at the perfect time, since over the past few weeks, there has also been a shift in the overall cryptocurrency market. The leading cryptocurrency driving the present uptrend, Bitcoin, has increased by 37% over the last month.
The NFT sector stands to gain significantly from any new capital inflow if the much-awaited bull market materialises, since recent on-chain data indicate that most non-fungible tokens are poised for a bullish run.