According to various reports, many may not be aware of it, but the subsequent mini-bull market in NFT has begun. The rally’s ignition fuse has already been lit, and all essential catalysts are in place. In the past several weeks, the price of ETH has increased by more than 33% from a base range that was comparable to the base range from the summer of 21 in that many people anticipated considerably lower pricing.
Contrary to the myth that NFTs typically sell off into ETH strength (the first significant ETH NFT bull run began in July), ETH saw a significant rebound in September of ’21 from $1.7K to $4K off its summer lows. The ETH NFT market is also on track to have its busiest month in terms of volume since June 22.
According to Kaleo, it’s interesting to observe that while the number of individual purchasers has not increased, strong NFT projects that have been operating throughout the bad market have experienced consistent increases in floor prices, some to new ETH ATHs.
Why should you worry?
Before the volume of the ETH NFT marketplace went parabolic, there was a comparable phenomenon in July of ’22, as shown in the graph below. The quantity and quality of projects both progressively rose, and as consumer interest in the market grew, so did the number of distinct purchasers.
Kaleo believes that the confidence in the market spreads to other market segments and eventually new retail as projects like Pudgy Penguins & Kanpai Pandas soar to new ETH ATHs, other blue chips like Chromie Squiggles and Apes rise, and current investors will continue to rotate into quality.
“You normally don’t have time to be extremely responsive in this market, so positioning yourself effectively now, while it’s dull, is crucial for when that comes.” He adds.
While many outsiders view NFTs as a speculative bubble that has already peaked, the attractiveness and intuitive nature of digital collectibles compared to new currencies are far easier to understand for the typical non-crypto native.
Only $5.35B was the highest monthly volume for ETH NFTs EVER. As per Kaleo, there’s a lot of gas left in the tank for the potential of the NFT market when compared to the overall DAILY volume throughout the crypto market, which has ranged anywhere from $25B to $75B over the previous couple of years.
Although Kaleo is very certain that they will set new records for NFT volume and unique purchasers in 2024 or 2025.
“it truly wouldn’t surprise me if we did so as early as the first half of 2023 given the current rally’s pace.”
NFTs are here to stay, as audacious as that may seem as per Kaleo. He believes that one has the choice of being reactive or proactive as technology and functionality continue to advance