The 2022 bear market has hit much of the NFT ecosystem. Sales plummeted, celebrities left, and consumer brands began to frown at the thought of launching their own unsustainable products… But the new year seems to have brought some changes.
With the start of the new year, the NFT market will start an uptrend. According to Cryptoslam data, his NFT sales volume on the global market this month has increased by 43%. With rising project floors, rising coin prices, and open editions on everyone’s lips, the mood in the community is also skyrocketing. Of course, it’s not just the positives that are driving big changes in Web3, it’s the statistical upward trend that’s driving the NFT space.
Before jumping into bullish thinking, however, there are a few things to consider before calling this a full-fledged bull market. So let’s analyze the market to see what’s really going on and determine which projects (or other factors) are driving this change.
NFT is back:
First, we need to get one thing right. For Web3 collectors, artists, and builders who have steadily established themselves over the past few years, NFT has never stopped. why? Because NFTs are so much more than money and markets. They are innovative technologies that can be used for different purposes. So saying “NFT is dead” is like saying “virtual reality is dead”. Market may go down.
The technology is very much alive and well though — but I digress For those who have only dug into Web3, or are watching from the outside, the NFT market seems almost dead and now rising again… but this time things are radically different. Unlike his NFT craze in 2021, the market has matured and is no longer the Wild West for everyone.
Let’s face it, million dollar sales and deals are happening less frequently in the NFT space than they used to. But maybe this is the best. Just as media coverage and mainstream attention, which often focused solely on the economic side of NFTs, is fading, the NFT community has gone back to basics. In 2022, creators and collectors alike will be forced to reassess why they became interested in and involved with crypto art in the first place.
It’s clear that a lot has changed in Web3 during the bear market and perhaps this recent uptrend is just the market showing this change as a result. After bottoming out at around $253 million in total ETH NFT revenue in November (the lowest month since June 2021), OpenSea recovered in January, reaching $300 million, according to the Dune Analytics dashboard. Because we hit over $50 million in sales (almost a full week left in the month).
So why is OpenSea reporting an increase in ETH NFT sales volume for the first time since April 2022? Is this a direct result of the recent ETH price spike, or is there something else to this market resurgence? The answer may surprise you. Or maybe not…because we can point directly to the forces at work in this latest NFT pump, and it all starts with his ETH.
Why NFTs Pump:
Any worthy NFT collector will quickly find that 1 ETH equals 1 ETH, by and large. That said, cryptocurrencies and NFTs will always retain their value in a way, regardless of coin price. The general perception in the NFT space is that pricing should not be the focus of decentralized creative industries built on blockchain.
As I said earlier, ETH can power the strange and wide world of NFTs, but Web3 is more than just coin stacking.
However, from the same collectible values, we can see that when the price of ETH changes, so does the price of NFT. This is the yin and yang of blockchain, and often goes in one of two directions.
In the first case, the ETH price falls. As a result, people are starting to panic about NFTs. This can lead to temporary brisk selling, but slow selling if ETH fails to catch up in time or continues to fall. For reference, check OpenSea’s monthly sales volume next to the ETH price. January 2022 was a record month for NFT sales (even though ETH was halved in price compared to the previous month), but things looked different when the summer crash hit.
In the second case, ETH is trending upwards, which could lead to a strong sell that breathes new life into the NFT space. This is part of the first bull market equation of 2021 and may still be happening. But whether NFT was the first to pump ETH or vice versa depends on who you ask. However, in any case, it is important to note that these two scenarios depend on the history of NFT trends over the past few years. A lot has changed in Web3, and it’s unclear if these trends will be felt.
So Bull Run Incoming:
However, beyond price action, one of the main driving forces for his NFT pumps in this moment comes from a few specific projects. Those who are actively innovating in the NFT space, building ecosystems, or otherwise helping to sustain themselves appear to be heading in the right direction. And the one recent event that’s pushing them forward isn’t really one of all. Instead, the resurgence of Bored Apes and all Open Editions (OEs) is buzzing the NFT space.
The Open Edition is a type of NFT release where, rather than minting and selling a limited number of identical NFTs of his, the creator omits the bookends and allows collectors to mint as many editions as they like. to Embossing time limit. Jack Butcher, with the influential Checks project, is one of the most prominent leaders in the recent Open Edition prosperity campaign.
Initially, Butchers OE was a satire on social media verification, and for $8 a copy he sold over 16,000 copies. After OE closed, Butcher began tinkering with its own combustion dynamics. This was to return value to the person who created the coin. In parallel with his efforts, NFT Space has done its part by launching dozens of offshoots. This trend has since caught fire, and numerous developers have since decided to launch similar ventures using his Manifold’s services to further this.
In January, developers large and small in the NFT space started their OE projects and the number continues to grow. However, while ETH pumping and open editions have been his two main drivers of this recent surge in NFTs, it has been the recently launched Bored Ape Sewer that has openly propped up the entire ecosystem. Pass.
As part of an ongoing new campaign centered around a new story arc titled
The Trial of Jimmy the Monkey, the Sewer Pass NFT became billable in mid-January and generated over $20 million in secondary sales. brought high. dookie dash. Given that Yuga and BAYC have maintained the NFT ecosystem over the past two years, it’s no surprise that NFTs are gaining traction alongside another landmark Bored Ape project.
BAYC aside, what can the NFT space expect from this ETH pump convergence, OE revival, and Web3 branding initiative? Very likely to be a busy place again. However, in the short term, this uptrend in price and sentiment seems likely to continue.
Originally published at https://businessdor.com on January 26, 2023.
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