NFTs Witness Surge in Trading Volume on ethereum
Data reveals a recent resurgence in Non-Fungible Tokens (NFTs), indicating a possible bull market for cryptocurrencies. According to IntoTheBlock, the trading volume of NFTs on the ethereum blockchain has reached its highest level since July.
Increased Trading Activity for NFTs
The trading volume provides a measure of the total number of collectible assets being traded daily, specifically focusing on ethereum-based NFTs. A rising value of this metric indicates increased trading activity and growing interest in these unique tokens. On the contrary, decreasing values imply a decline in popularity and usage of NFTs in the blockchain.
Trend in NFT Trading Volume
The previously low trading volume of NFTs has recently displayed a noticeable upward trend, following a similar pattern seen during the early parts of the year when the cryptocurrency market was bullish. However, the interest in NFTs dwindled in July and remained stagnant until a recent surge in trading volume.
Positive Indicator for Cryptocurrency Sector
The resurgence of interest in NFTs is seen as a positive sign for the broader cryptocurrency market. The influx of capital typically flows from bitcoin and ethereum to altcoins and other blockchain applications like NFTs as investors increase their risk appetite.
Integration of Capital and Stand-alone Interest in NFTs
While the rise in trading volume may imply a rotational shift of capital from traditional cryptocurrencies to NFTs, it may also indicate separate financial interest in NFTs as their own financial instrument.
bitcoin Price Movement
The price of bitcoin has surged by over 38% in the past month, hovering above the $37,000 mark.
The recent surge in NFT trading activity on the ethereum blockchain and the upward movement of bitcoin‘s price are positive indicators for the broader cryptocurrency market. This increase in NFT trading volume may signal a potential rise in interest from investors, either as a rotation of capital or as a standalone financial instrument.
### News source: bitcoinist.com