Wednesday, October 4, 2023

CryptoPunks Surge by 371%


Investors are becoming more bullish after the sharp decrease in the NFT sector. This indicates a high probability of reaching the local bottom and a market recovery in the next weeks.

CryptoPunks’ 24-hour trading volume has surged by 371 percent to $3.98 million, according to Wu Blockchain. The floor price of the collection has also increased correspondingly to 53.8 ETH. At the same time, the market capitalization of CryptoPunks has surpassed $1.67 billion.

With a current price of $323,163, the top-price of the item sold in the last 24 hours is 155 ETH. Investors’ confidence in the project is expanding, as evidenced by such trends. It comes with the chance of a reversal of the previous months’ negative market tendencies.

The market capitalization of CryptoPunks is constant and even increasing over time. However, from November 2021 until the middle of May 2022, the trade volume tended to decrease. The most popular NFT-collections remained useful as a value repository. The falling trading volume, on the other hand, indicated that crypto investors and enthusiasts were less interested in such things.

The NFTs market segment was a major contributor to the long-running crypto winter. It includes a source of investor concerns about future crypto projects’ financial potential. However, current trends show that the big NFT collections are receiving renewed interest. It has the potential to benefit the entire market as well as some associated cryptocurrencies like Ethereum.

Looking at the Big Picture

The previous weeks marked mounting doubts regarding the NFT segment’s long-term viability. Many experts speculated about a possible collapse of the big NFT-collections after hearing that CryptoPunk #273 sold for only $139,000, compared to its $1 million price six months ago. They also speculate on the reorientation of investors to alternative market choices.

However, for the following reasons, such concerns were unfounded. First, Ethereum’s price has dropped dramatically in recent months. This means that the increasing volatility of the major cryptocurrencies like Bitcoin is mostly to blame for the shift in the fiat value of CryptoPunks’ products.

Second, while certain objects were sold for far less than their initial value, the NFT-aggregate collection’s capitalization remained consistent. The recent week has seen an increase in market activity in all three key categories: holders, buyers, and sellers. Holders are becoming more aware of the expanding chances to profit from market appreciation of their assets. Due to their scarcity and the absence of superior alternatives on the market, buyers are more likely to invest in these things.

Sellers are also more active as prices rise, allowing them to lock in short-term profits. Such tendencies may persist in the next weeks, resulting in the NFT segment’s expanding position within the broader crypto market.

Consequences for the Crypto Market

The crypto market will be affected by the rising favorable trends in a number of ways. First, the NFT-early segment’s positive indications could suggest a reversal of broader market trends in other crypto sectors. The NFT-downturn segment’s began several weeks before the major cryptocurrencies’ historical highs were reached, according to historical statistics.

Second, the reintroduction of the NFT-segment could help redistribute liquidity movements within the market. Despite the liquidity concerns caused by Terra’s demise, the liquidity levels in CryptoPunks and other NFT-collections show a good trend.

Third, the increasing trading volume in the largest NFT-collections could help Ethereum’s price rise. The solid support level of $1,750 keeps ETH from falling any lower. At the same time, Ethereum’s key aim for the next few months could be the $3,600 significant resistance level. This occurs if market improvements prove to be long-term.

As a result, relative positions of key altcoins may improve accordingly, resulting in a shift in the crypto market’s structure.

Rainy Naidoo
Rainy Naidoo
Rainy Naidoo is a writer for Cryptoconstellation. She has her Degree in Journalism and communications. Rainy Likes to spend her free time reading and exploring new places.

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