Some may see the non-fungible token (NFT) market as booming if they are just focused on price rises. Overall, however, the evidence reveals a different story.
In first place are Pudgy Penguins and Bored Ape Yacht Club. Their floor price (the lowest possible purchase cost) and tokens have both seen double-digit increases in the last few weeks. Although there are a few fewer buyers, the upswing is continuing.
Pudgy Penguins’ floor has risen beyond 5 ETH, a 20% gain from last week, thanks to 201 sales and almost 1,000 ETH in volume over the last seven days. After falling sharply, BAYC’s floor has made a strong recovery, increasing 81% during the last 30 days.
Rising Prices, Fewer Buyers
The floor price is an important metric to keep an eye on. The floor price is the current lowest selling price of an NFT in a collection. We will base our collection on the assumption that one Pudgy Penguin is currently selling for 5.38 ether (ETH). In most cases, a rising floor indicates that customers are willing to pay a premium to enter. Holders usually make a break for the exit as the floor collapses.
Even while headline prices have been going up, a deeper dive into the market structure shows that widespread involvement is really going down. According to data compiled by CryptoSlam, global sales of NFTs dropped to around $175 million in April from $304 million in February. There was a roughly 50% drop in both the quantity of transactions and the amount of active users.
Also, from March to April, average selling prices more than doubled, going from $30.60 to $67.38. Despite their differences in viewpoint, both sets of data reveal the same occurrence. A few investors are making very large acquisitions, rather than a widespread increase in demand for blue chip collections.
Even when looking at blue chips, the quality of demand varies. The consistently high transaction counts and rising prices seen at Pudgy Penguins are signs of persistent activity. The fact that collections like CryptoPunks have had similar weekly activity with substantially fewer sales indicates that a small number of large transactions are having a substantial impact on price.