The NFT market capitalization unexpectedly jumped 21% overnight, reaching $6.3 billion. This sudden surge is driven largely by renewed interest in Ethereum-based collections.
On Monday, the NFT market experienced a significant surge, with a total market capitalization increase of over 20% in a single day, from $5.1 billion to $6.3 billion.
The abrupt revival results from renewed interest in Ethereum-based collections, following months of stagnation.
A high-profile CryptoPunk sweep served as a significant catalyst. A newly created wallet, 0x1bb3, spent 2,082 ETH, or approximately $5.87 million, to purchase 45 CryptoPunk NFTs within hours, according to on-chain data from Lookonchain.
The transaction ignited OpenSea, where the wallet currently contains assets valued at over 1,700 ETH, or approximately $6.5 million.
Blue-Chip NFT Incite Market Revival as CryptoPunks Predominate
The rally was spearheaded by CryptoPunks, with floor prices increasing by 14% from the previous day to $175,320. According to CryptoSlam, this surge propelled the project to the summit of the 24-hour sales leaderboard, with a volume exceeding $14.7 million. That represented an astonishing 11,143% increase in daily sales.
Other Ethereum collections adopted this approach. Moonbirds experienced a 31.1% increase, while Pudgy Penguins experienced a 2.7% increase. Bored Ape Yacht Club experienced a 6.9% increase, while niche collections such as Infynex Patron experienced a 9.4% increase.
Investors are redirecting capital toward high-value NFT assets, as evidenced by the broader increase, which suggests a change in sentiment.
Iconic Collections and ETH Dominance Hint at Broader Recovery
The dominance of Ethereum was maintained by a significant margin, as evidenced by the $32 million in NFT sales that occurred within 24 hours, representing a 339% increase. According to data from CryptoSlam, Solana, Bitcoin, and BNB Chain were all behind, with each generating between $1.3 million and $2.1 million in sales.
The increase in activity is accompanied by a noticeable increase in buyer and seller participation and a significant rise in wallet activity. Within the same period, Ethereum alone experienced a surge in activity, with over 5,400 buyers and 6,000 merchants on NFT marketplaces.
Although it is uncertain whether this momentum will persist, the rapid increase has demonstrated the rapidity with which sentiment can fluctuate in the NFT sector. The market had been sluggish for several months, as volumes had decreased and floor prices had softened across main collections.
Not all platforms or blockchains experienced the recovery uniformly. While Ethereum-based collections experienced a surge, Immutable and Polygon experienced smaller gains or minor declines, indicating Ethereum’s continued dominance in high-value NFT transactions.
The enduring appeal of iconic collections with cultural significance is demonstrated by the leading role of CryptoPunks in the recent surge, particularly when significant investors participate.
This sudden surge in interest and funding may suggest the beginning of a more extensive market recovery. Nevertheless, seasoned analysts caution that the NFT market is unpredictable and closely correlated with the broader cryptocurrency trends.
