According to one non-fungible token (NFT) researcher on X, the floor prices of some of the largest collections might be up between 10% and 30% in the past few weeks, but that doesn’t mean the markets are preparing for a big bull run.
Taking to X on October 22, “Wale.Swoosh” acknowledged that the markets have been performing well. However, based on several factors, the NFT trading community shouldn’t be excited that the market is ready for a big rally in the coming sessions.
NFT Floor Prices Rising
At spot rates, some of NFTs’ popular and valuable collections, such as the Bored Ape Yacht Collection (BAYC), Mutant Ape Yacht Club (MAYC), and even CryptoPunks, have posted gains in trading volume and floor prices.
To illustrate, the floor price of BAYC is at around 26.19 ETH, up from 23 ETH recorded in late August 2023. Meanwhile, Azuki’s floor price stands at 5.33 ETH, up from 3.41 ETH in late August.
Looking at trends, however, there could be a notable spike in floor price and trading volume in the past week, though trading activity is suppressed. As a demonstration, while BAYC’s floor price is at 26.19 ETH, up roughly 9.8% on the last trading day, there has been no change in the number of owners. There has been a 0.1% increase in new owners for CryptoPunks in the past trading day.
Only a tiny percentage of the bigger NFT collectors or traders showed interest, subsequently buying an item. It suggests that though floor prices are rising, only a few active trading wallets exist.
Crypto Prices Rising, Readying An NFT Bull Run?
The floor price of an NFT is the lowest asking price set for any collection. While this metric changes between collections, it can gauge interest and how the broader crypto community perceives the value of that collection to be. Moreover, since the market determines the floor price, it tends to fluctuate, as evidenced in the last year.
Based on available data and the current market conditions, the researcher didn’t dismiss the odds of floor prices rising even further. Even so, based on the analyst’s view, citing historical performance, floor prices tend to expand at a faster rate only once Ethereum (ETH) and BTC volatility drops.
At spot rates, Bitcoin and Ethereum prices are steadily rising. Bitcoin has already pierced above July 2023 highs, racing above $33,000 as the crypto community expects even more gains. The spike has lifted the markets, channeling more liquidity to crypto, a precursor for a “real NFT bull run” to begin, according to Wale.Swoosh.