In September, mainstream media outlets proclaimed NFTs to be worthless.
Non-fungible tokens have surged ever since, with trading volumes hitting a four-month high on Nov. 10.
Most popular collections have posted double-digit percentage gains over the past month, with Cryptopunks seeing an influx of buyers after Yuga Labs co-founder Wylie Aronow shelled out $1.1M for a rare punk.
The NFT community appears to have taken matters into their own hands after a recently aired episode of The Simpsons took aim at NFTs.
While the bounce comes as a welcome relief for NFT holders, it’s worth noting that a lot of the increased activity is driven by airdrop farmers rather than an influx of new buyers.
Blur, the leading NFT marketplace by volume, has been running an airdrop campaign slated to end on November 20, with BLUR tokens distributed to active traders and lenders.
BLUR has more than doubled in price over the past month, leading many airdrop farmers who had stopped participating in the program to return. This is evidenced by a spike in daily users of Blur, while OpenSea users have remained relatively steady.
Meanwhile, the total number of NFT traders continues to languish near all-time lows even after increasing over the past month. “Same ole folks buying NFTs but not many new entrants,” wrote NFTstats.eth.
While it’s too early to tell if this NFT rally is just a bounce or the start of a new bull market, the ongoing crypto rally may have also played a role.
“The money flow is pretty clear. When people in traditional money or crypto ‘feel’ rich, they go after culture…NFTs (art & PFPs) are the essence of crypto culture,” said prominent collector Bharat Krymo.