What is causing this NFT Bull Run?
*This article was meant to be posted at the time of writing which was Jan 11th**.
First, according to NFTGo’s data, ETH blue-chips have been going up in ETH and USD terms in the last 30 days.
/ @blur_io’s airdrop
Blur one of the newest NFT marketplaces that have picked up steam seeks to reward the most active traders in their NFT marketplace and has incentivized people to bid to receive an airdrop. The highest bidders are more likely to get an airdrop. These incentives might be getting more liquidity into the market.
/ Big projects announcements
Yuga Labs (the company behind BAYC) teased an interactive mint experience in Jan, there are rumors of Azuki’s announcements, & Doodles has been teasing some future plans. Web2 companies are also entering the space (GOT, NatGeo, etc). When big projects start to tease plans or future announcements, the market shifts into a positive stance where whales and regular traders feel comfortable deploying capital.
Bored Ape Yacht Club on Twitter: "Jimmy faces the ultimate trial. Stay tuned to https://t.co/h8JXeLkC57 for what comes next. pic.twitter.com/0QVNxrZbWW / Twitter"
Jimmy faces the ultimate trial. Stay tuned to https://t.co/h8JXeLkC57 for what comes next. pic.twitter.com/0QVNxrZbWW
// The bull run pattern
Looking at data from @cryptoslamio I noticed that since 2019, ETH NFTs ended December with a higher amount of volume than in past months and January starts with big sales. I posted a thread and article before we saw more of this bull run where I explain this pattern.
valens 🦇🔊 on Twitter: "Let's analyze that. Dec 2019: $853.351Dec 2020: $4.68MDec 2021: $2.1bn USDJanuary then starts with a bigger volume month 👇 📊: @cryptoslamio pic.twitter.com/0apqWlfIA2 / Twitter"
Let's analyze that. Dec 2019: $853.351Dec 2020: $4.68MDec 2021: $2.1bn USDJanuary then starts with a bigger volume month 👇 📊: @cryptoslamio pic.twitter.com/0apqWlfIA2
I thought it would happen again this year since I noticed December was closing at a bigger valuation than in past months. And it did. Dec 2022 ended closing at $546M USD, the biggest volume month since August 2022.
We have just 11 days so far in January and are already at around $234M USD for ETH NFTs according to CryptoSlam!’s data! There’s no specific answer as to why this pattern seems to happen every year since 2019.
Is this NFT run also happening on SOL?
Yes. While Dec closed at lower amounts than November for SOL NFTs, January is almost surpassing December’s volume amount in just 11 days.
SOL’s average NFT sale is $129.32 (so far), surpassing November’s avg sale of $109.28 USD. I think this might be happening since the bear market had blue chips at lower floors, and users rotated capital into them, taking advantage of the low prices.
ETH’s average NFT sale stands at $393.16 USD (as of now) for January. The rest are from the past months. I guess the reason might be the same: users rotating $$$ and trading into blue chips.
Thanks for reading! I usually report and analyze on-chain data in a simple, easy-to-understand way. If you liked this, consider giving me and @suppvalen on Twitter a follow for more content. 🤍 This data comes from the sources mentioned above.