Signs of recovery in the NFT market, volume surges

Recently, the NFT sector seems to have shown some long-awaited signs of recovery. According to the data, the total market capitalization of the NFT sector has rebounded to over $6 billion, currently reported at $6.417 billion, with a 24-hour increase of 23.2%. Even more noteworthy is the explosive growth in volume, with the total trading volume in the past 24 hours being approximately $40 million, an increase of as much as 318.3%.

Among mainstream NFT projects, CryptoPunks, Moonbirds, and Pudgy Penguins stand out prominently. CryptoPunks has attracted attention due to a whale buying a large number of them in a short period of time; statistics show that 76 CryptoPunks changed hands in less than 5 hours, setting a record for the largest transaction scale in recent years for this series. Moonbirds gained popularity when a trading platform used them as official avatars. Pudgy Penguins received additional attention for appearing in Season 2 of the TV show "Poker Face."

In addition to these outstanding projects, most NFT projects have also seen good increases. For example, BAYC increased by 13.2% in 24 hours, and Azuki increased by 26.8%. NFT projects in the Bitcoin ecosystem are no exception, with Taproot Wizards rising by 30.3%.

The NFT concept coins are also experiencing a surge. According to data from a trading platform, BLUR is currently priced at 0.1176 USDT, with a 24-hour increase of 27.4%, ranking third on the platform's list of gainers.

Although there were earlier predictions that the NFT market would warm up, many investors have become numb to such forecasts due to similar predictions failing repeatedly over the past few years. However, with the recent arrival of the "alt season", discussions about whether the NFT market can recover have heated up again.

Some industry insiders have stated that certain institutions have begun to lay out plans for the NFT market in advance. For instance, a well-known NFT collector revealed that institutions have been contacting him with some interesting offers since two weeks ago. Some old players who were active in the last NFT cycle even exclaimed, "NFT Season has finally returned."

The sudden rebound of the NFT market is not difficult to understand logically. On one hand, with the strong rebound of ETH prices, investors will consider related investment targets while focusing on ETH, and NFTs, as an important part of the Ethereum ecosystem, naturally become an alternative choice. In terms of volume, the NFTs with the largest trading volume are still concentrated on the Ethereum chain's more liquid top projects, indicating that the funds in this round of slight rebound mainly come from within the Ethereum ecosystem.

On the other hand, after experiencing a long downturn, the NFT market has undergone significant reshuffling, with weak investors having exited, and funds intending to take control may have already completed their selection and layout of targets. Considering the non-standardized liquidity characteristics of NFTs themselves, NFTs might be an easier choice for control compared to other crypto assets.

However, the current challenge is that due to the prolonged slump of the NFT market, the industry consensus has almost collapsed. Even though there has been a short-term increase in enthusiasm, it remains uncertain whether it can attract more retail investors and funds in the future. Compared to altcoins, the recovery of the NFT market may face greater uncertainty.