NFT
Base is a silver lining in a struggling NFT market: Here’s why
Posted:
| Last updated: April 3rd, 2024
Journalist
- The NFT market showed renewed activity after a period of decline.
- Yuga Labs’ Blue-Chip NFTs stood out, while BAYC and MAYC’s collections also showed strong performances.
Over the past several months, the NFT market experienced a notable decline. However, a fresh surge of enthusiasm has emerged, largely driven by the Base protocol. This newfound interest is injecting vibrancy into the NFT market.
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Base comes to the rescue
Data from Parsec Finance revealed a rising trend in Base NFT transactions, particularly notable in the Rainbow World collection, which defied broader NFT market trends. This rise in Base NFTs suggested a potential positive impact on the market.
Base NFTs chartable on parsec
Rainbow World breaking NFT market wide trends pic.twitter.com/yUV9RlUyyb
— parsec (@parsec_finance) August 29, 2023
Conversely, the outlook for PFP NFTs remained somber. PFP NFTs, or profile picture NFTs, witnessed a decline, with the USD market cap of top projects dropping from $5 billion to $2.2 billion, a 56% decrease from the peak in February.
The USD market cap of these top PFP projects peaked at $5b this year.
It's now $2.2b, down 56% ($2.8b) from the Feb peak. pic.twitter.com/6aaUvyXTT0
— NFTstats.eth (@punk9059) August 29, 2023
A broader view of NFT activity across marketplaces also revealed a decrement. According to Dune Analytics, NFT trades and volumes fell across major NFT platforms.
This decrement in volume and trade may have broader implications for the NFT sector.
Source: Dune Analytics
What’s cooking at Yuga Labs?
But regardless of the above trends, Blue-Chip NFT collections by Yuga Labs have maintained relatively stable performance. For instance, Bored Ape Yacht Club’s [BAYC] floor price rose by 8.48% last week while its volume increased by 49% in the last 24 hours, according to NFTGO’s data.
Similarly, Mutant Ape Yacht Club [MAYC] exhibited a 14.8% weekly increase in price and a 69% surge in sales over the past 24 hours.
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The growing interest in Yuga Labs’ NFTs might also contribute to the growth of ApeCoin [APE], whose price surged to $1.473. However, Apecoin’s turning network growth indicated a falling interest in transferring APE.
Likewise, its velocity suggested a reduced frequency of APE trading.
Source: Santiment
