NFT ecosystem attempts a bounce back amid bearish market sentiment

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Over the past two years, non­fun­gi­ble tokens (NFTs) gave the cryp­to ecosys­tem the boost it need­ed to grab main­stream atten­tion — owing to the involve­ment of promi­nent artists and celebri­ties. How­ev­er, despite the enor­mous loss­es suf­fered by NFT investors fol­low­ing the ongo­ing, 10-month-long bear mar­ket, the ecosys­tem showed sus­tain­able signs of a come­back in the last two weeks.

Since Sept. 12, the per­for­mance of blue-chip NFT col­lec­tions wit­nessed a steady growth, inch­ing back toward the 10,000 Ether (ETH) that was lost in mid-August 2022, accord­ing to data by NFTGo. 

The per­for­mance of blue-chip NFT col­lec­tions. Source: NFTGo

On Sept. 20, the mar­ket cap­i­tal­iza­tion, which is derived from the floor price and the trad­ing price of NFTs, spiked near­ly 16.5% at rough­ly 11.25 mil­lion ETH. 

Mar­ket cap­i­tal­iza­tion of NFT col­lec­tions. Source: NFTGo

Rec­i­p­ro­cat­ing the mar­ket cap breach of the 11 mil­lion ETH mark for the first time in three months, the num­ber of NFT hold­ers grew 32.24% along the same time­line, as shown above.

Ethereum Name Ser­vice (ENS) cur­rent­ly con­tributes the high­est vol­ume at 9.25%, which is fol­lowed by pop­u­lar NFT col­lec­tions such as Bored Ape Yacht Club and Otherdeed. 

NFT mar­ket sen­ti­ment. Source: NFTGo

How­ev­er, cur­rent mar­ket sen­ti­ment — cal­cu­lat­ed based on volatil­i­ty, trad­ing vol­ume, social media and Google trends — remains cold as investors try to recoup their pre­vi­ous losses.

Relat­ed: Post offices adopt­ing NFTs leads to a phi­lat­e­ly renaissance

NFT mar­ket­place OpenSea launched the Open­Rar­i­ty pro­to­col to ver­i­fy the rar­i­ty of NFTs with­in its platform. 

The pro­to­col aims to pro­vide a reli­able “rar­i­ty rank­ing” that would assist investors when con­sid­er­ing pur­chas­ing NFTs.

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