According to DLNews, the prices of CryptoPunks, one of the most renowned NFT collections, have more than doubled recently, reflecting a broader market rally. The lowest-priced CryptoPunks are now valued at approximately $112,000, giving the collection a market value of at least $1.6 billion. However, rare pieces from the collection can fetch significantly higher prices. This surge indicates that NFT collectors remain active despite the prolonged bear market in the asset class, as noted by Nicolas Lallement, co-founder of NFT data platform NFT Price Floor. He mentioned that collectors were waiting for the right moment to invest and are now acting to avoid missing out.
NFTs, or non-fungible tokens, are unique crypto assets often used to represent art, music, or collectibles. Lallement suggests that the current surge might be the beginning of a potential "violent repricing" in the market. Despite the recent price increase, CryptoPunks are still 73% below their peak floor price of $417,000 in November 2021. The demand for NFTs had soared in late 2021 following a significant rise in Bitcoin's value, with many investors channeling their profits into NFTs. However, the market downturn in 2022 led to a decline in NFT collections. With Bitcoin reaching new highs, some of the wealth generated might be flowing back into NFTs.
Punks OTC, a pseudonymous NFT trader, reported that the past week has seen the highest trading volume in years, with 189 CryptoPunks sales totaling $23 million, marking a 166% increase from the previous week. Many NFT collections, including CryptoPunks, have a limited supply, typically around 10,000 tokens, making them relatively illiquid and susceptible to significant price fluctuations with small demand changes. Punks OTC also observed a rapid growth in the CryptoPunks community on social media, reminiscent of the activity seen in 2021.
While CryptoPunks have experienced the most significant gains, other NFT collections are also benefiting from the price rise. Lallement noted a "trickle-down effect" into other collections, with CryptoPunks often serving as a leading indicator for blue-chip NFTs. For instance, the generative art collection Chromie Squiggles has nearly doubled its floor price since November 11. Other blue-chip collections like Pudgy Penguins and Milady Maker have seen increases of 89% and 103%, respectively, over the past two weeks.
