Ethereum Drives NFT Trade Volume to Six-Month High

The recent uptick in Ethereum’s price has invigorated its NFT ecosystem, leading to a record trading volume of $75 million over the past week, marking the highest point since mid-January. The total NFT trading volume across major blockchains reached $143.5 million, with Ethereum NFTs comprising a substantial portion. This week's NFT trade volume shows a notable increase from just two weeks ago, when Ethereum recorded only $18.3 million. In the same period, Bitcoin-based NFTs also saw growth, rising from $11 million to $25.6 million, while Polygon-based NFTs experienced a slight downturn. The increase in NFT trading volume correlates closely with the rise in Ethereum's price, which surged from approximately $2,525 on July 6 to around $3,730—an almost 50% increase, according to The Block's Ethereum Price page. Despite this recent growth, NFTs have been facing a significant decline in market share since their peak in 2021; 2024 was noted as particularly challenging for NFT trading, with an 18% decline in annual sales reported by The Block. Yuga Labs, recognized for its Bored Ape Yacht Club collection, has made headlines by selling off several of its acquisitions, including Moonbirds, Cryptopunks, and Meebits, indicating a shift in focus towards its immersive metaverse platform, Otherside. In the broader market, the Cboe BZX exchange recently filed for an ETF that would include PENGU, a token from the Ethereum-based NFT collection Pudgy Penguins, initiating an SEC review for approval. Notably, Pudgy Penguins was the third-largest NFT collection by trading volume last week, according to CryptoSlam. Disclaimer: The Block operates as an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor. This article is for informational purposes only and not intended as legal or financial advice.