Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. Today I will be looking at the recent surge NFT's have been making with an expected comeback for non-fungible tokens following 32% growth in trading volume during October 2023.
NFT's Comeback
A resurgence has been noted in the non-fungible tokens (NFT) market over the month of October, with a substantial 32% growth in trading volume compared to September 2023. NFT trading volume surged by $99 million to reach a staggering $405 million in October, reaching levels of sales which had not been witnessed since back in August of this year.
This was noted in the recent crypto data released by DappRadar, who pointed out that this growth marks a significant shift from the year-long downward trend in NFT trading. Their report highlighted that promising signs of recovery are on show in the sector, which should offer hope to projects that have faced challenges over the previous year or so.
A lull has been noted in the market for profile picture (PFP) projects, such as Yuga Labs’ Bored Ape Yacht Club (BAYC), but the recent uptick in NFT trading volume should be seen as an indicator of a broader revival in the digital assets industry. It is also worth noting that the surge in NFT trading volume coincided with Bitcoin’s price rebounding above $35,000. This signalled Bitcoin's highest price over the past 16 months and has pumped optimism into the overall market. Many analysts have noted that the price increase of Bitcoin was driven by anticipation surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
Solana & Ethereum NFTs
The report also noted how Solana (SOL) has shown a notable growth in NFT trading volume, with the high-speed layer-1 blockchain increasing by 15%, from $24 million to $27.6 million. SOL's own price experienced a significant surge of 65% in October 2023, with the price of the token rising from $23 to approximately $38.
The second-largest cryptocurrency, Ethereum (ETH), maintained its position as the king of NFT trading, with a 50% increase in trading volume. Other blockchain's have not been so beneficial from the growth on Ethereum, with a significant drop in sales volume seen on other blockchains such as Polygon, Starkware, and Flow. Their sales volume have dropped 8%, 42% and 32% respectively.
With NFT trading having gained momentum in October, the floor prices of popular PFP projects also witnessed an increase. The floor price of BAYC rose from $40,000 worth of Ethereum to around $55,000. This surge will have instilled optimism among NFT traders but it is also important to note the trading volume for October is still significantly lower compared to the $2 billion worth of NFT sales seen back in March 2023. The overall number of NFT sales has also continued to decline, with the total number of NFTs sold decreasing by 5%, from 3.58 million in September to 3.4 million in October. While this is a significant drop, it is incomparable to the drop of 290,000 NFT sales back in August.
Mark Cuban Optimistic
Renowned entrepreneur, investor, and owner of the Dallas Mavericks, Mark Cuban recently shared his thoughts with WIRED magazine, as shown in the video below.
Cuban made a name for himself as a tech entrepreneur by selling his internet-radio start-up to Yahoo for nearly $6 billion way back in 1999, and since then he has been a vocal figure in the world of cryptocurrency and blockchain. His opinion often matter, especially when he speaks about the direction of the digital asset space.
Some notable things from Mark Cuban's thoughts on NFTs and their potential resurgence:
1. The NFT Market's Current State:
Cuban was very clear on his thoughts when acknowledging the current state of the NFT market. He noted how the prices of some NFT projects have collapsed and in doing so it has left investors in a difficult situation, while also adding to the levels of speculation surrounding the market. Cuban went on to liken the current market to that of the dot-com bubble.
2. The Value of Collecting:
Cuban noted that the best approach to NFTs is to consider them as collectibles instead of speculative assets. In doing so investors will be less likely to dump the NFT in a market crash, while also highlighting the importance of being a collector who genuinely values NFTs for their unique properties and content.
3. Historical Parallels:
Cuban went on to draw a parallel with the early days of other industries, in particular the internet stock market crash. Considering the climate, he noted how the likes of Amazon once traded for a mere $5 a share. He also mentioned Microsoft, which experienced a considerable stock price drop. Both companies ended up being giants in their respective fields, and considering how early days the NFT market is, the long term investors will likely be the beneficiaries of any potential future boom.
4. NFTs as Digital Assets:
Cuban sees NFTs as items with potential to evolve beyond their current status. He believes in a scenario where NFTs could be used as more than collectibles and speculative assets, with the potential use of NFTs for digital tickets. He feels this concept could add utility and value to NFTs while also ensuring that original owners to receive a portion of proceeds every time their NFTs are resold.
Regardless of the current state of the market, Cuban is optimistic on NFTs. He feels the market could very well rebound and find innovative use cases in the future. Along with his opinion on NFTs, Cuban also noted the importance of luck when aiming to become a billionaire. He also called for higher taxes on the super rich, while noting the many opportunities in technology for people to advance themselves and push for their goals in life. With the crypto and NFT spaces still very much in their early stages, Cuban feels that adding his perspective to the industry and its potential trajectory can only benefit users in the long term. The potential of NFTs remains a controversial topic, but with high profile players showing their faith in the market, the outlook can only be positive.
Have a great day,
Peace. CryptoGod-1.
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