The market for non-fungible tokens (NFTs) is experiencing a resurgence as the crypto market enters a bullish phase. With popular cryptocurrencies such as Bitcoin, Ether, Solana, and Polygon surging in value, NFT series associated with these altcoins are also witnessing a climb in their prices. NFTs are unique digital collectibles built on blockchain networks, ranging from game characters and cartoons to artworks and artists. One such NFT project, Pudgy Penguins, has seen a significant increase in value after a recent slump. This collection of 8,888 NFTs, resembling cartoon penguins, is built on the Ethereum blockchain.
According to data from the CryptoSlam tracker, the trading volume of Pudgy Penguins NFTs has skyrocketed by 394 percent in just one week. The prices of these NFTs, which previously traded at a low value, have soared by 74 percent. The cheapest Pudgy Penguin NFT is now priced at $21,289 (roughly Rs. 17.7 lakh), a considerable jump from its previous price of $9,000 (roughly Rs. 7.50 lakh) worth of ETH. Alongside Pudgy Penguins, other NFT series like Azuki (anime-inspired), Milady Maker (Ethereum project), Claynosaurz, and Chads (Solana projects) have also witnessed price spikes in recent weeks.
This surge in NFT prices comes as a refreshing change from September 2021 when a report indicated that 18 percent of the top 8,850 NFT collections by market cap were worthless, and 41 percent experienced a significant drop in prices to around $5 (roughly Rs. 415) to $10 (roughly Rs. 835). Notably, the revival in NFTs coincides with Bitcoin and Ether reaching their nineteen-month highs. Bitcoin is currently trading at $41,738 (roughly Rs. 34.8 lakh), while Ether is priced around $2,228 (roughly Rs. 1.85 lakh). Similarly, Solana and Polygon are also witnessing more gains than dips, leading to the launch of NFT projects that are linked to these cryptocurrencies.
NFTs reached their peak in September 2021 when sales of these digital collectibles totaled approximately $881 million (roughly Rs. 7,344 crore). However, as of November of this year, NFT sales have only generated around $10.85 million (roughly Rs. 90 crore). Despite this decline, the recent resurgence in NFT prices indicates a renewed interest in the market.
As the crypto market surges, NFTs are garnering attention once again. The value of projects like Pudgy Penguins and other NFT series associated with popular cryptocurrencies is on the rise, bringing renewed excitement to the digital collectibles space. With Bitcoin and Ether trading at their highest levels in months, the future looks promising for NFTs. However, it remains to be seen whether this revival is a short-lived trend or a sustainable rally for the NFT market.