NFT Whales Pounce on Declining Prices to Push Transaction Volume Higher

Data from NFTgo indicates that top NFT projects are registering increased transaction volume while the food prices continue to fall.
Image source: Medium/IrisNet blog

Quick take:

  • The transaction volumes for top NFT projects are continuing to rise despite the falling floor prices.
  • This is indicative of retail NFT traders fleeing the market while whales pounce to capitalise on lower prices.
  • The Azuki attracted a 1,144% increase in transaction volume while the BAYC increased by 284%.

Leading non-fungible token (NFT) projects have registered a significant increase in transaction volume over the last 24 hours. Popular Japanese anime-themed NFT collection Azuki’s transaction volume increased by a whopping 336% over the last 24 hours.

On the other hand, Yuga Labs’ Bored Ape Yacht Club and Mutant Ape Yacht Club also saw their transaction volumes rise by 284% and 118%, respectively. Recently launched Moonbirds also experienced a successful 24-hour period with volume rising by 120%.

The crypto market has been on a bearish trend for the past three weeks and this seems to have created an opportunity for bargain hunters to pounce.

The Bored Ape Yacht Club floor price has plunged to about 88 ETH down from its all-time high of 152.14 ETH, while the MAYC’s floor price has dropped to 19.50 ETH after hitting an all-time high of 39.75 ETH.

The massive collapse in the prices of some of the leading NFTs has coincided with a significant increase in trading activity. 

A recent research report by Nonfungible indicated that NFT sales fell by a whopping 92% compared to September last year when the market peaked amid an influx of venture capital funding and celebrity projects.

However, while the activity may have slowed since then, venture capital has continued to flow in, with startups and crypto projects raising $2.1 billion during Q1 of 2022.

Even as the world’s most popular cryptocurrency bitcoin plunges to new multi-month lows of about $30,000, institutional investors continue to buy more in anticipation of the next rebound.

On Tuesday, El Salvador bought 500 bitcoins worth approximately $15 million as of this writing. Therefore, this demonstrates the mechanics of the market.

NFTs and crypto whales are buying more digital currencies from retail investors, who are quick to cash out when the markets face south.

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