It’s been quite a roller-coaster ride in the world of Non-Fungible Tokens (NFTs) lately. Top NFTs have experienced price reductions, while outliers like Milady Maker and Sproto Gremlins buck the trend and come out stronger. If you’re feeling a tad lost in these frequent shifts, you’re not alone. We’re here to break it down.
Over the past 30 days, NFTs have seen a voyage similar to a ship in stormy waters, according to fascinating research from Nansen published on Twitter. Many “Blue-Chip” NFTs, including the previously esteemed Azuki, have witnessed their floor price dropping by more than a quarter, particularly since their Elementals launch.
What does this mean for you as a collector, investor, artist, or enthusiast? Understanding these trends helps you anticipate and navigate the market with more confidence. But it’s not all gloomy skies. The NFT landscape, as unpredictable as it is, also births winners amidst its fluctuating dynamics.
Collections like Milady Maker have emerged from the downturn with flying colors, boasting a hefty 66% rise in floor price. This ascent sets them of a par with seasoned tokens, such as Mutant Ape Yacht Club. Taking an outlier stance, Sproto Gremlins, crafted especially for Bitcoin enthusiasts, have reported a stunning 262% growth within a month.
Intriguingly, this time around, none of the top 20 holders qualify as “smart money addresses”, as defined by Nansen’s social media manager, Edward Wilson. The top of the list is dominated by a legendary NFT collector.
The exclusion of “smart money addresses” could signal a shift in the NFT market. Wilson revealed that NFT volumes and prices have steadily declined from their peak, causing many holders to experience significant losses.
That said, a smart money address, previously dominant in the top bracket, has diversified its NFT holdings. This address currently holds 21 Sprotos, following a two-day buying strategy that involved a large acquisition followed by further purchases. This appears to be a potentially profitable trade, even as the overall trend for NFTs leans towards continued downward pressure.
Whether you’re new to NFTs or a seasoned veteran in the space, the implications of these market shifts are apparent: the NFT landscape is a complex cosmos with both challenges and opportunities. As ever, the key to navigating this domain lies in staying informed, being adaptable, and thinking strategically. After all, in the profound words of Charles Darwin, “It is not the strongest… that survives, nor the most intelligent… It is the one that is most adaptable to change.”