The NFT market remains one of the biggest growth driver for the Flow [FLOW] blockchain. To some networks, NFTs provide an avenue for measuring the level of activity and growth. Flow is on the right path if we judge its latest performance under such metrics.
Flow ranked second on 19 August in the list of top blockchains based on NFT sales volume according to recent blockchain ranking by Cryptoslam.io. According to the report, Flow had slightly over $1 million in daily NFT sales volume. It came in second after Ethereum [ETH] post garnering a 44.54% increase in NFT sales volumes.
— CryptoSlam! (@cryptoslamio) August 19, 2022
FLOW managed to achieve this impressive ranking courtesy of strong demand propelled by the NFL All Day after its beta launch on 19 August. This development underscores the level of demand that the network can achieve through sports-related NFTs.
FLOW on recovery mode?
Flow’s native cryptocurrency FLOW is down by more than 30% in the last 10 days. Its price action dropped from its recent peak at $3.25 to as low as $2.09 during the trading session of 19 August. FLOW had a press time price of $2.20. The NFT sales volume data may have had a positive influence in the slight recovery.
Organic demand associated with the NFT sales volumes alone is not enough to facilitate a strong recovery. However, it might provide a significant boost to investor sentiment, thus supporting a recovery.
Flow has maintained healthy NFT activity on its network in the last 30 days. This means that the latest increase in NFT trades volumes is not an isolated event. It also helps that the network has maintained healthy development activity in the last four weeks. This is encouraging for investors and may contribute to investor confidence.
As far as FLOW’s price recovery is concerned, investor sentiment seems to be improving in favor of the bulls. The FTX funding rate dropped substantially in the last three days in line with the sentiment shift as the price crashed. However, it registered a solid uptick in the last 24 hours, thus confirming the return of bullish sentiment.
So how’s the FLOW then?
FLOW’s performance in the last few days has mostly been influenced by the overall crypto market conditions. Favorable organic demand may contribute to its recovery. However, its ability to bounce back quickly after the latest pullback is predominantly be affected by the prevailing sentiment in the crypto market.