Nonfungible tokens (NFTs) had given the crypto ecosystem the boost it needed to gain mainstream attention over the last two years, huge kudos to the involvement of prominent artists and celebrities. Despite the massive losses suffered by NFT investors as a result of the ongoing, 10-month-long bear market, the ecosystem has shown sustainable signs of recovery in the last two weeks.
According to NFTGo data, the performance of blue-chip NFT collections has been steadily increasing since Sept. 12, regaining the 10,000 Ether (ETH) that was lost in mid-August 2022.
On September 20, the market capitalization, which is calculated using the floor price and trading price of NFTs, increased by nearly 16.5% to approximately 11.25 million ETH.
In response to the market cap breaching 11 million ETH for the first time in three months, the number of NFT holders increased by 32.24% over the same time period, as shown above.
The highest volume is currently contributed by Ethereum Name Service (ENS) at 9.25%, followed by popular NFT collections such as Bored Ape Yacht Club and Otherdeed.
However, current market sentiment, as measured by volatility, trading volume, social media, and Google trends remain rough as investors seek to recoup their previous losses.
OpenSea, an NFT marketplace, launched the OpenRarity protocol to verify the rarity of NFTs on its platform.
The protocol's goal is to provide a reliable "rarity ranking" to help investors decide whether to buy NFTs.