- BAYC, Azuki floor prices climbed over 10% recently to 26 ETH, 5.3 ETH.
- But researcher notes minimal new buyers, low trading activity so far.
- Historical data shows bigger rallies tend to follow BTC, ETH stability periods.
According to one NFT analyst, floor prices for top collections like Bored Ape Yacht Club (BAYC) have risen 10-30% recently. However, they remain skeptical this signals an impending bull run in the near future.
On October 22nd, researcher Wale.Swoosh acknowledged on social media that NFT markets have performed well lately. But based on several factors, he cautioned against expectations of a major rally in coming sessions.
Key Collection Floor Prices Up
Wale.Swoosh pointed out that at current prices, flagship NFTs like BAYC, MAYC and CryptoPunks have seen gains in floor prices and trading volumes.
For example, BAYC’s floor has risen from 23 ETH in late August to around 26 ETH presently, up nearly 10%. Azuki’s floor has climbed from 3.4 ETH to 5.3 ETH over the same period.
However, the analyst noted that while prices and volumes have spiked in the past week, actual trading activity remains muted. BAYC ownership is unchanged despite the higher floor price.
Limited Buyer Appetite
According to Wale.Swoosh, only a tiny fraction of major NFT collectors have been active in buying items recently. This suggests that even as prices rise, the number of active traders remains low for now.
In the analyst’s view, floor prices often rise much faster once volatility drops for Ethereum and Bitcoin. Both currencies are currently seeing steady gains.
Wary of Premature Bullishness
While further floor price increases may occur given market conditions, Wale.Swoosh remains wary of premature bullish calls.
Historical patterns show more substantial, sustained NFT rallies tend to follow periods of stability in the broader crypto market. This drives more capital into NFTs.
With BTC surging past $33,000, the analyst sees liquidity flowing back into crypto. But they maintain a real bull run requires lower volatility first.
For now, rising NFT prices may simply reflect temporary speculation, not a durable trend. Wale.Swoosh cautions more muted trading activity signals limited conviction so far, despite improving fundamentals.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.