The quantity of non-fungible tokens on the Bitcoin network saw a resurgence last week as the market began to stabilize.
Increase in Bitcoin NFT sales
As reported by CryptoSlam, Bitcoin (BTC) NFT sales surged by 56% in the past week, exceeding $20 million. Additionally, the number of buyers within the network increased by 48%, reaching 29,403.
NodeMonkes, a relatively newer collection, emerged as the top-performing NFT in the ecosystem, achieving over $3.4 million in sales with 302 transactions. Only the Guild of Guardian Heroes collection from Immutable X surpassed it in sales during the week.
Bitcoin Puppets generated a sales volume of $3.03 million, marking a remarkable 239% rise from the prior week.
Next in line was Ordinal Maxi Biz, which saw its sales climb to over $1.89 million, followed by Taproot Witches with sales of $1.3 million.
Ethereum and Solana
Ethereum (ETH) continued to be the most active network for NFTs, facilitating sales of $28 million. Solana (SOL) recorded $13 million in sales, while BNB Chain managed $3.7 million.
September proved to be another challenging month for NFTs, with total sales declining by 48% to $318 million. The sales figures for Ethereum, Bitcoin, and Solana amounted to $108 million, $63 million, and $61 million, respectively.
Bitcoin’s recovery
The uptick in weekly NFT sales coincided with a rebound in the prices of most cryptocurrencies. Bitcoin reached $66,000 for the first time since July, contributing to a total market capitalization for all cryptocurrencies of $2.3 trillion.
Crucially, the widely monitored crypto fear and greed index climbed to the greed territory of 60 for the first time in two months. Historically, traders tend to invest in riskier assets like stocks and cryptocurrencies during periods of market greed, which has been spurred recently by the Federal Reserve’s interest rate cuts, China’s stimulus efforts, and a decrease in stablecoin holdings among institutional investors.
As illustrated below, the stablecoin holdings among these investors have plummeted to their lowest levels in two years.
The Nansen chart further indicates that these holdings, which surged in 2022 amid the collapse of the FTX and Terra ecosystems, have been on a downward trend since. It seems that smart money investors have been reducing their stablecoin holdings and reallocating their investments towards cryptocurrencies and NFTs.
The primary risk for investors in the NFT space is the oversaturation of the market, with thousands of new collections emerging. A recent report reveals that 96% of over 5,000 existing NFT collections are effectively “dead.”
In other words, these collections have experienced zero trading volume, garnered no sales for over seven days, and have seen no activity on social media platforms.
