Non-Fungible Tokens Make A Comeback Amid Crypto Surge

In a new report, Galaxy Research says that NFTs are rising in popularity once again as investors look to buy the crypto-linked product.

Non-fungible tokens are digital assets on a blockchain that represent ownership of virtual or physical items and can be sold or traded.

They are often referred to as “digital art” and can include everything from virtual paintings to digital trading cards.

NFT volumes had been declining since the last crypto winter occurred in 2022 but are now reversing higher following U.S. elections and as the broader crypto market rallies.

Weekly NFT trading volumes exceeded $100 million U.S. in November, reaching a peak of $172 million U.S. on Dec. 2, according to Galaxy Research.

Leading NFT marketplaces such as %OpenSea , Blur, and Magic Eden are also reporting increased sales.

Blur and OpenSea were responsible for 60% and 27% respectively of the total volume of NFTs traded over the last 30 days.

NFTs linked to the %PudgyPenguins ecosystem have outperformed in recent weeks.

The Pudgy Penguins collections saw their floor prices rise 206% and 265% respectively, the report from Galaxy Research noted.

Like other crypto-linked assets, NFTs have gone through volatile periods and are prone to big price swings and market crashes.

The latest comeback for NFTs is occurring with the price of Bitcoin at $104,500 U.S., having risen 136% so far in 2024.

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