Colin Wu assessed the situation in the NFT market as the beginning of recovery

Renowned analyst Colin Wu said that last month, as the overall cryptocurrency market showed signs of recovery, major NFT marketplaces also recorded positive results

Cryptocurrency researcher and analyst Colin Wu made an important observation: Last month, as the overall cryptocurrency market began to show signs of recovery, NFT marketplaces also showed positive momentum. Trading volumes in the sector continued to rise strongly for four weeks in a row, the first time such a scenario has unfolded since the start of 2023.

This growth was impressive: transaction volumes in the non-fungible token market almost doubled over the specified period. Interestingly, this increase significantly exceeds the increase in the value of ETH, which is evidence of increased transactions on the network. Additionally, Colin Wu noted that “prices of blue chip NFTs have also risen.” For example, the price of Bored Ape Yacht Club (BAYC) returned above the 30 ETH mark, and the Azuki collection showed an increase of more than 17% over the past month.

The analyst emphasized that in the current market conditions, when the growth of the ETH rate does not exceed the rate of increase in the price of BTC, ether holders are not interested in transferring their assets to BTC. "Without the use of leverage, investing in the NFT market has become a more attractive option. Not only does this allow us to expect token values ​​to rise, but it also provides insight into a bull market for non-fungible tokens."

Colin Wu is convinced of the resilience of the NFT industry, noting that even in difficult market conditions, no major market in the sector has collapsed. He advises taking a long-term view of this asset class, with the potential for returns comparable to today's performance in the centralized exchange (CEX) industry.

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