Pudgy Penguins, BAYC rally masks a shrinking NFT market as volumes and users fall
Blue-chip NFT collections are rising in price while overall market volume and user participation significantly decline.Summary
While high-profile collections like Pudgy Penguins and Bored Ape Yacht Club (BAYC) are experiencing double-digit price increases, the broader NFT market is actually shrinking. Global NFT sales volume dropped from $304 million in February to approximately $175 million in April, with active users and total transactions also falling by nearly half.
This phenomenon suggests that capital is concentrating into high-value trades within a few blue-chip collections rather than a broad-based market recovery. For instance, while Pudgy Penguins shows relatively high transaction counts, collections like CryptoPunks are seeing prices driven by a small number of large transactions. Additionally, much of this rally may simply be a byproduct of the broader crypto market's upward movement in ETH and BTC.
(Source：CoinDesk)