NFT volumes surge as investors buy the dip amid crypto crash
Whales are trying to consolidate their position as the market crashes
NFT trading volume has surged over the past 24 hours as the crypto market crash brought the price of Ether (ETH) below the $1,200 support, making NFTs, which are mostly priced in ETH, more convenient.
In a crisis scenario, characterized by NFT floor prices plummeting and traders exiting the market, whales seem to try to consolidate their positions.
Top NFT collections saw trading volume almost double, in some cases, according to DappRadar data, with the Bored Ape Yacht Club NFT collection sein the largest increase to around $4m after a 92% surge over the past 24 hours.
Over the same period, other Yuga Labs creations such as Mutant Ape Yach Club (MAYC) and Otherdeed for Otherside, saw increases of around 60% to more than $1.8m, while the Crypto Punks NFT collection, recently purchased by Yuga Labs, saw trading volume up by a third of $1.8m over the previous 24 hours.
NFTs market sinking as figures shrink
On the flip side of the coin, over the past 30 days, the situation has changed dramatically, with volumes, traders and prices plummeting, according to Dapp Radar data.
What is your sentiment on ETH/USD?
In the past month, while the number of traders was dropping by up to 90% for some top collections, according to DappRadar, the floor price of the top NFTs plummeted.
Data from Dune analytics showed that all the top NFT collections are seeing a big decline in their floor prices.
One of the most influential NFT collectors, the American rapper Snoop Dogg, aka Cozomo de ‘Medici, said in a message to art NFTs collectors: “On a serious note, there is never shame in selling, whether you are taking profits, rotating positions, or loss harvesting. Do what’s best for your situation."
Pranksy, a major NFT collector, said: “It's hard to know what to tweet about right now, the markets are brutal. However the future for #NFTs is bright, the tech of the blockchain is what gives them such potential, not the current price of a cryptocurrency.” .
