NFT Market Shows Signs of Recovery, Pudgy Penguins Outperform

The non-fungible token (NFT) market is showing signs of recovery, Galaxy Research said in a report Monday.

NFT volumes began to recover in November following the U.S. elections and the ensuing crypto market rally.

Weekly NFT trading volumes exceeded $100 million in early November for the first time since May, reaching $172 million on Dec. 2, Galaxy Research said in a report Monday.

The NFT market has seen a downturn in 2022 following a record year in 2021, with NFT trading volumes declining sharply.

However, the market showed signs of recovery towards the end of the year.

NFTs are digital assets on a blockchain that represent ownership of virtual or physical items and can be sold or NFT volumes had been declining for most of the year.

However, the trend began to reverse in November following the U.S. elections and the ensuing crypto market rally.

Weekly NFT trading volumes exceeded $100 million in early November for the first time since May, reaching $172 million on Dec. 2, Galaxy said in a report.

“This resurgence has been primarily driven by increased activity among the top 25 collections by market cap,” analyst Gabe Parker wrote, with increased participation across leading marketplaces such as OpenSea, Blur and Magic Eden.

Blur and OpenSea were responsible for 60% and 27% respectively of the total volume over the last 30 days, the report noted.

NFTs linked to the Pudgy Penguins ecosystem outperformed. Pudgy Penguins and Lil Pudgys collections saw their floor prices rise by 206% and 265% respectively, the report added.