Weekly NFT Market Analysis(0210-0217)

2023-03-14, 11:07

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![](https://gimg2.gateimg.com/image/article/1678791154image.png)
Continuing from last week’s trading volume spikes from Yuga labs and Doodles, the [NFT](https://www.gate.io/zh/nft/?ch=GM_blog_insights1_20230314&utm_campaign=TR_NroyL1pP&utm_content=&utm_medium=ptr&utm_source=CH_sApqy83F&utm_term= "NFT") market cap is showing a slight upward trend of recovery. But this should not be interpreted as the overall recovery of the market as this uptick is mostly attributed to the trading hype from the blue-chip collection, which contributes to about 30~35% of the market cap and trading volume. In addition, there have been brand new projects such as Checks VV, Chrysalism DNA and UINTS with new innovative concepts in their NFT ecosystem entry.

## NFT Market Cap & Trading Volume Analysis (ETH)
![](https://gimg2.gateimg.com/image/article/1678791186image2.png)
NFT Market Cap & Trading Volume in ETH (NFTGo.io)

According to the market data, it can be seen that overall trading volume and market cap has been in an upward increase. The trading volume was expected to drop after the hype minting and trading from blue-chip collections which amounts to about 12.31%. decrease. This type of trend in the NFT Market can be defined as the "mild contraction" phase, which occurs after going through the declining cycle. This type of phase is usually defined by weak trends and a prolonged period of low trading volume, suggesting that market participants possess a strong awareness of future trends and development.

## Traders Ratio Analysis
![](https://gimg2.gateimg.com/image/article/1678791209image3.png)
Traders Ratio of 2022-2023 (NFTGo.io)

The decline in the number of traders is a continuation of the trend seen in recent months, which is likely due to the market experiencing a period of consolidation after a rapid expansion earlier in the year. This is particularly evident in the decline in the number of active wallets on the <a href="/vi/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> blockchain, which has fallen by approximately 60% from its peak in May. However, the increase in the number of buyers and activity among whales and blue-chip holders suggests that some investors are starting to see value in NFTs again. In addition, the recent drop in prices could be attracting new buyers who see this as an opportunity to enter the market at a lower price point. 
But, despite the increase in the number of buyers, the market still faces a challenge of excess supply over demand, which is reflected in the negative ratio of buyers and sellers. which could lead to further decline of the market if not addressed. It is also essential that the buying power and the market is stabilized by new innovative and engaging NFT projects that attract a broader range of investors and collectors are necessary. As the market evolves, new opportunities are likely to emerge that will drive a sustained recovery, but the market must adapt to changing trends and attract more investors to achieve this.

## Top 5 Blue Chip Collection Trading Volumes (ETH)
![](https://gimg2.gateimg.com/image/article/1678791242image4.png)
Weekly Top 5 Trading Volume 2023 (NFTGo.io)

This week, the trading volumes of blue-chip collections have been relatively low, which suggests a lack of buying and selling interest among investors. Additionally, the "Sewer Pass" game has ended, with @Mongraal being announced as the winner. This event may have had an impact on the trading volumes of blue-chip collections, but the extent of its influence is unclear.

On the other hand, the upcoming news of the metaverse of "Otherdeed" has caused an increase in trading volumes of 60.34%. This is likely due to investors seeing potential in the future growth and success of the project. However, it remains to be seen if this increase in trading volumes will be sustained or if it is just a temporary surge. In addition, the trading volumes of Bored Ape Yacht Club (BAYC) have dropped significantly by about 30%, and the trading liquidity has decreased by 10.71% but the overall market cap was increased by 3.81%. With the successful game launch of Yuga Labs, it shows bright promises of what’s to come from other NFT projects in the future as they have started to fulfill the roadmaps and showcase.

## Top NFT Sales of the Week
![](https://gimg2.gateimg.com/image/article/1678791274image5.png)
Weekly Top NFT Sales (NFTGo.io)

In this week the highest sale was from “Cryptopunks collection and was sold for 295 ETH and most of the top sales were from “Cryptopunks, Otherdeed, BAYC, Azuki and Clone X” collections.

## Trending Project Analysis “UINTS”
![](https://gimg2.gateimg.com/image/article/1678791300image6.png)
Background Info

UINTS is an NFT collection that experiments with numbers as art. Each token is assigned a random number using the seven-segment display, which displays any number between 1 and 9,999.
Tokens are assigned a random value between 1 and 50 until the 1000th token is minted. After that, a 24-hour timer starts and the max value assigned to new tokens decreases by 5 for every 1,000 tokens minted until the 10,000th token is minted, then new tokens will have a value of 1.
Combining tokens is possible in UINTS, and the largest outcome number possible is 9999. Combining tokens adds the UINTS numbers and generates a new number with a different color. Combining the numbers involves burning the base NFTs. The value of any UINT is 9999.

## Trading Volume Analysis
![](https://gimg2.gateimg.com/image/article/1678791334image7.png)
Trading Volume of “UINTS”(NFTGo.io)

The floor price of the collection has experienced a 30% drop in the last 24 hours to around 0.02 ETH since February 14th, resulting in an 80% decrease in volume. However, on February 13th, the floor price reached an all-time high of 0.04 ETH before returning to fluctuate between its support and resistance levels. On that same day, the collection had the highest volume with 1.03k ETH sales, which accounts for approximately 71% of the collection's total volume since its minting. Despite the recent decrease in volume, the collection remains popular and is still trending within the community.

## Holder Trend
![](https://gimg2.gateimg.com/image/article/1678791371image8.png)
Holders Trend of “UINTS”(NFTGo.io)

In the UINTS NFT collection, 9.47% of the total 39,116 NFTs are held by whales and blue-chip holders, indicating that these traders recognize the collection's potential and value. Only 44 blue chip holders participated in the collection's minting, and 106 whales participated in secondary market sales. 
With the remaining whales and holders still holding onto their NFTs. This is positive news as it suggests that both whale and blue-chip holders have confidence in the long-term value of their investment in the collection. 
 
## Conclusion 
In conclusion, the NFT market is showing signs of a mild recovery, but it is still facing challenges such as excess supply over demand and a lack of diversity in attracting new investors. The recent uptick in trading volumes can be attributed to the blue-chip collections and new innovative projects, such as Checks VV, Chrysalism DNA, and UINTS. While the decline in the number of traders and active wallets may suggest a period of consolidation, the increase in the number of buyers and activity among whales and blue-chip holders provides a glimmer of hope for the market. As the market evolves, new opportunities are likely to emerge, and it is essential that the market adapts to changing trends and attracts a broader range of investors and collectors to drive a sustained recovery. Overall, the NFT market is still a dynamic and evolving space, and it will be interesting to see how it develops in 2023.

Author: Korea University Blockchain Research Institute
This article represents only the views of the researcher and does not constitute any investment suggestions.
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