The volume of Bitcoin-based non-fungible tokens (NFTs) saw a significant recovery last week as the overall cryptocurrency market stabilized.
Bitcoin NFT Sales Surge
According to data from CryptoSlam, Bitcoin NFT sales surged by 56% over the past seven days, reaching over $20 million in total sales. The number of buyers within the Bitcoin network increased by 48%, rising to 29,403.
Among Bitcoin NFTs, the NodeMonkes collection emerged as the best performer, generating over $3.4 million in sales from 302 transactions. This placed it second only to Immutable X’s Guild of Guardian Heroes collection, which led the overall NFT market in sales during the week.
The Bitcoin Puppets collection also saw significant momentum, with sales reaching $3.03 million, a staggering 239% increase compared to the previous week. Other notable performers included Ordinal Maxi Biz, with sales of over $1.89 million, and Taproot Witches, which brought in $1.3 million.
Ethereum and Solana Networks Remain Active
While Bitcoin NFTs showed a strong rebound, Ethereum remained the most active blockchain for NFT trading, processing $28 million in sales over the same period. Solana also performed well, with $13 million in sales, followed by the BNB Chain, which recorded $3.7 million in NFT sales.
September’s Slump in NFT Sales
Despite the recent uptick in Bitcoin-based NFT sales, the broader NFT market had a difficult September. Total sales dropped by 48% to $318 million, with Ethereum, Bitcoin, and Solana accounting for $108 million, $63 million, and $61 million, respectively.
Bitcoin Market Bounces Back
The rise in NFT sales coincided with a broader recovery in the cryptocurrency market. Bitcoin’s price surged to $66,000, its highest level since July, while the overall market capitalization of cryptocurrencies rose to $2.3 trillion.
The crypto Fear and Greed Index, a key market sentiment indicator, shifted into the “Greed” zone for the first time in two months, reaching a score of 60. Historically, such shifts prompt traders to move into riskier assets like cryptocurrencies and NFTs. This optimism was fueled by factors such as the Federal Reserve’s interest rate cuts, China’s economic stimulus measures, and a reduction in stablecoin holdings by smart money investors.
Decline in Stablecoin Holdings
Nansen data revealed that smart money investors have been reducing their stablecoin holdings, which are now at their lowest levels in two years. This trend likely reflects a shift from stablecoins into riskier assets, including cryptocurrencies and NFTs, as confidence in the broader market improves.
Risks in the NFT Market
Despite the recent boost in Bitcoin NFT sales, the market remains saturated. A recent report revealed that 96% of the more than 5,000 existing NFT collections are “dead,” meaning they have zero trading volume, no sales activity for over seven days, and no engagement on social media platforms.
While the recovery in Bitcoin NFTs offers some optimism, the NFT market still faces challenges amid intense competition and a glut of collections.
