NFT Floor Prices Showing Growth, But Not Indicative of Bull Run
According to an NFT researcher on X, the floor prices of major NFT collections have increased by 10% to 30% in recent weeks. However, this doesn’t necessarily mean that the market is gearing up for a significant bull run. Despite the positive performance, there are several factors that suggest caution.
NFT Floor Prices on the Rise
Popular and valuable NFT collections like Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and CryptoPunks have seen gains in trading volume and floor prices. For example, BAYC’s floor price has risen from 23 ETH to 26.19 ETH since late August.
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While there has been a notable increase in floor prices and trading volume in the past week, trading activity remains suppressed. Despite BAYC’s floor price rising by approximately 9.8%, there has been no change in the number of owners. CryptoPunks saw a mere 0.1% increase in new owners.
It appears that only a small percentage of major NFT collectors or traders are actively participating in buying and selling. This suggests that while floor prices are increasing, there are only a few wallets engaging in active trading.
Crypto Prices Rising, But Is an NFT Bull Run Imminent?
The floor price of an NFT is the lowest asking price for any collection, serving as an indicator of interest and perceived value. While floor prices may continue to rise based on available data and market conditions, historical performance suggests that significant expansion typically occurs when Ethereum (ETH) and BTC volatility decreases.
Bitcoin price on October 24 when floor prices of top NFT collections are rising| Source: BTCUSDT on Binance, TradingView" width="1233" height="592" />
Bitcoin and Ethereum prices are steadily increasing, with Bitcoin surpassing July 2023 highs and reaching above $33,000. This upward momentum has brought more liquidity to the crypto market, potentially setting the stage for a “real NFT bull run,” as suggested by Wale.Swoosh.
Hot Take: NFT Market Shows Promising Signs, but Caution is Needed
While the floor prices of major NFT collections have been on the rise, it is important to exercise caution when interpreting this as a sign of an imminent bull run. Although there has been increased trading volume and price growth, the lack of active trading wallets and the correlation with Ethereum and Bitcoin volatility suggest that further market fluctuations may occur before a sustained NFT bull run begins.
