NFT Weekly Recap - April Week1
Hope you all had a great weekend. Welcome to this week's NFT market recap, covering basic stats and notable news with my observations. If there is anything else you'd like to see in the recap, please let me know. DMs are open.
As usual, let's begin with numbers.
It's (Azuki) PARTY TIME!
Total OpenSea trading volume (as measured in ETH) increased by 27% week on week. The 7-day moving average is ~53k ETH, up from ~32.5k ETH three weeks ago. The number of daily active traders decreased by 3% week on week, because we had a quiet Monday to Wednesday. Therefore, the total number is uninspiring. However, the Azuki party on March 30th lit everything on fire. Trader count had since shot back up and broke 60k yesterday (Sunday).
As you can see from the chart above, we bottomed in early March. The series of headlines (CryptoPunk acquisition, $APE airdrop, and most recently Azuki airdrop) are generating formidable momentum in the NFT market, which is probably enough to set another NFT bull run in motion.
In terms of floor price, Azuki broke 30 ETH floor price before falling back to 27.3 ETH. Following Azuki, Clone X and Doodles also enjoyed healthy growth. World of Women is kind of falling behind, despite their Galaxy airdrop. More interestingly, PudgePenguins is coming back to life with a 145.96% 7d floor change, due to rumors about its new leadership.
Azuki the Next BAYC
Azuki was at 15.7 ETH, when I was writing last week's recap. I wrote that I'd expect a dump to come after March 30th's announcement. It was natural to assume that people would dump after receiving the airdrop. It happened to BAYC/MAYC following $APE. It also happened to World of Women following Galaxy.
I was deadly wrong. Azuki is from another universe. There was not even a dip on March 30th. It was a straight line from 15 ETH to 30 ETH. There are already discussions on whether Azuki could be the next BAYC. BAYC during the last bull made from 30 ETH to 110 ETH. Let's see what Azuki could do in the next six months.
I also wrote last week that Azuki, Clone X, and Doodles are best positioned to challenge MAYC's No. 3 spot in PFP NFT. Azuki has already surpassed MAYC. Clone X might be doing that this week. Keep in mind that there are 20k Clone X, twice as much as Azuki. With their upcoming MNLTH reveal, Clone X may have its own Azuki moment soon.
As floor prices increase, it's natural for PFPs to release secondary collections to increase accessibility and enlarge their community. Azuki airdropped 2 Somethings to each Azuki owner on March 30th. Its current floor price is 5.5 ETH. We can see a comparison below.
Secondary collections are roughly valued at 20% of the floor price of the genesis collection. Clone X MNLTH seems to be overvalued while Meebits seems to be undervalued. Both Azuki something and Clone X - MNLTH are not revealed yet. With their reveal and further price discovery, we will find out whether the 20% relationship established by BAYC/MAYC is going to sustain.
OpenSea announced that it would support Solana in April. Solana NFT is nowhere close to Ethereum NFT, but it is the second-best.
Ethereum NFT projects benefit from the security assurance guaranteed by the Ethereum blockchain. NFTs are tokens living on blockchains. If the underlying blockchain disappears, they would go to 0.
Solana has its problems. Being down several times is not a good sign. They also forked off a solid 30-50% of all RPC servers into oblivion during a system upgrade last week, affecting mostly Solana NFT traffic.
But high risk comes with a high reward. Although the expectation of additional OpenSea liquidity has been priced in, as major Solana NFTs increased by a fair amount since the OpenSea announcement, certain Solana NFT projects appear to be promising opportunities in the mid to long term. For example, Portals is a digital land project on Solana and is valued at a severe discount to its Ethereum counterparts.
We will share more findings with regard to opportunities on Solana in the upcoming weeks.
Some other news you might be interested in learning more:
- Blur, an NFT marketplace for pro traders, closed an $11 million seed funding round led by Paradigm.
- Jeff Koons, will launch his first NFT collection later this year.
- x2y2 announces a new initiative, in which it charges 0% marketplace fee from seller and reimburses buyer gas fee in its native token $x2y2.
- GenieSwap announces built-in rarity rankings.
Traders on OpenSea going back to 60k is a very positive sign. The number was 80k+ during the January-February bull. If the trend continues, that is, if more players are coming back to the playground, it will take little time for trading volume and floor prices to reach new ATHs.
NFTs may be on the verge of another bull run.