The NFT market is showing signs of recovery after the Bored Ape Yacht Club (BAYC) collection posted significant gains over the past few weeks. The collection’s floor price reportedly climbed from around 5 ETH to more than 10 ETH within just one month.
The rally comes as traders' appetite for high risk crypto assets begins to recover. Not only BAYC, but ApeCoin (APE) has also gained momentum amid rising trading volume across NFTs and meme coins.
Yuga Labs CEO Michael Figge believes the surge is more than a short term hype. According to him, NFT prices fell disproportionately during the prolonged bear market despite continued growth in the number of unique holders.
“We have seen community participation continue to grow even when the prices remained under pressure for a long time,” Figge said in an interview with CoinDesk.
Renewed momentum in the NFT market also comes alongside growing activity in other speculative sectors, such as meme coin. Over the past few weeks, traders have increasingly returned to high risk assets after the decentralized finance (DeFi) sector faced pressure from multiple hacks and declining yields.
Besides BAYC, other major NFT collections such as Pudgy Penguins have also posted strong gains. NFT backed lending activity and rumors surrounding a potential token launched by OpenSea have further boosted optimism across the digital collectibles market.
Still, industry players believe this NFT recovery may not fully mirror the extreme euphoria of 2021. However, the increase in trading activity suggests that interest in community driven digital assets and internet culture has not completely disappeared.
