NFTs were one of the biggest boom and bust cycles in crypto. And many thought their moment as a relevant digital asset was long gone. But, is the NFT boom on the way back?
What’s happening:
- The trading volume in NFTs are up significantly month over month as capital is quickly pouring back into crypto
Why it matters:
- NFTs have been a largely forgotten about digital asset that many assumed were a short lived fad after experiencing an implosion in value
- NFTs are considered to be a good indicator on how much speculative capital is active within crypto and digital assets
The intrigue:
- Sothebys just launched a new auction for NFT project Bitcoin Ordinals earlier this month
By the numbers:
- NFT trading volume in November was up 125% month over month
- Approximately $994M of total transactions occurred across multiple NFT exchanges in November
- 80% of the NFT transaction volume has occurred on Blur
- 18% of the NFT transaction volume has occurred on OpenSea
Yes, but:
- Nominal prices on NFT collections are still down significantly from previous all time highs despite the recent uptick in activity
- While many notable collections have maintained a loyal community and digital presence, thousands of NFT projects were completely abandoned by founders and developers after the NFT ecosystem fell largely out of favour
- Another challenge for NFT collections has been dealing with regulatory scrutiny and litigation amid governments trying to define whether or not many NFT collections represent the offering of a security
