Nfts Pick Momentum As Market Steadies After Slump. Here’s Why

Non-fungible tokens (NFT) are steadying after a steep drop earlier this tear as sales volumes pick up momentum amidst the introduction of new products and initiatives that have boosted enthusiasm for a market. Cryptocurrency markets are highly sentiment-driven.

A Bloomberg report, cited data from Nansen, a blockchain analytics firm, stating that weekly NFT sales volume is still about half it was in January when there was a blitz of big-ticket sales and celebrity collaborations. But the market is recovering, with weekly volume now up about 32% from a low in March.

Meanwhile, the report cited DappRadar data where it highlighted that the market for NFTs remains small but is regaining momentum as new products aim to entice users to trade items like digital art of cupids or penguins.

Earlier this week, a new NFT index has been launched, in addition, to a trial version f a marketplace by Coinbase Global Inc. These could lead to a rise in the transactions of NFTs.

The DappRadar data showed that about 200,000 daily unique wallets were interacting with NFTs in the first quarter. Meanwhile, Coinbase had about 89 million verified users at the end of last year.

Pedro Herrera, a senior data analyst at DappRadar told the mentioned news agency that the NFT market is undergoing a consolidation period with volumes again starting to increase.

Data on Cryptoslam showed that, in the last seven days, NFTs recorded a breath-taking 116.94% rise in sales volumes.

Index Coop on Wednesday launched the highly anticipated launch of its game-changing NFT Index: JPG.

In a statement, Index Coop stated that the JPG NFT Index provides broad exposure to blue-chip and premier NFT collections through a single liquid token. JPG is composed of fungible versions of NFTs such as fractional NFTs, NFT liquidity vaults, NFT curation DAOs, NFT currencies, and wrapped NFTs. Additionally, JPG provides governance rights to vote on the token protocol.

Nansen report stated that the NFT market is on wild swings. It stated that one in three NFT projects have little or no trading activity as users often move on quickly to the next, shinier piece of digital art.

“I expect to see lots of ups and downs over the next few months,” said Aaron Brown, a crypto investor who writes for Bloomberg Opinion. “We’ve seen some successful launches with less hype than earlier NFTs … But I don’t get excited by week-to-week news.”

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