The success of MoonBirds and traders’ anticipation of Yuga Labs’ land sale of The Otherside is bringing a surge of fresh liquidity to the NFT market.
Spring is here and with it a new awakening of non-fungible tokens (NFTs). Total sales rose to $20 billion in the last week of March, but have fallen to $17.6 billion since mid-April.
However, on April 16th, newly landed Moonbirds NFT brought over $280 million worth of liquidity to the market, and this combined with rumors that Yuga Labs would cut Otherside’s stake resulted in a steady increase in overall NFT sales .
NFT 30-day market cap/volume. Source: NFTgo.io
Over the past seven days, the sector’s total market cap is up more than 3% to about $18.6 billion, while total volume is up almost 37% from $1.65 billion.
While it remains to be seen whether the adage “the tide lifts all boats” applies to the NFT market, liquidity can circulate in blue chip NFTs and forthcoming collections.
Blue chip volumes are down, but for how long?
Liquidity has already made its way to the top NFTs in terms of total revenue, with Mutant Ape Yacht Club (MAYC) up over 200% over the past seven days.
MAYC 7-Day Market Cap/Volume. Source. NFTgo.io
With the growing number of NFT owners and buyers, projects and investors seek to create ecosystems of mutual value.
RTFKT’s CloneX emphasizes that the next phase of development will focus on ecosystem building. CloneX is riding a steady wave, hovering around 18 Ether (ETH) ($53,073). However, the mystery MNLTH NFT sent to all CloneX holders has grown to over 11 ether in the past 7 days as it is no longer a mystery box. Its contents revealed the first-ever Nike NFT CryptoKicks that came with customizable features, a DNA vial for future counterfeiting events, and MNLTH2. For every MNLTH burned, the items purchased are currently worth at least $26,000. A bottle of Murakami RTFKT Skin also recently sold for 72 Ether ($212,976).
While some projects focus on ecosystems, others focus on shared interests and exclusivity.
PROOF Collective, founded by Kevin Rose, is a members-only project that started the Moonbirds NFT and many traders were shocked by the $354 million raised in less than a week. Surprisingly, Moonbirds has almost outperformed blue-chip NFTs like Doodles in terms of total volume.
Moonbirds current floor price is up over 390% since it entered the secondary market and is trading at 33.5 Ether ($96,447.84) at the time of writing.
The reserve price of Moonbirds. Source: NFT price level.
NFT residents are open about the legitimacy of their explosive growth, especially since the announcement of the NFTs gifted to famous celebrities like Jimmy Fallon, Steve Aoki, Pussy Riot, the New York Gallery and the Springberg Gallery, among others.
While some NFT faucets suggest Moonbirds will drain liquidity from the market, the data shows otherwise. In the space of 24 hours, total revenue on OpenSea nearly tripled from $66.7 million on April 15 to over $177.5 million when Moonbirds launched on April 16.
To date, NFT prices have continued to rise, and blue-chip NFTs have seen aggregate sales surge across the board. Although opinions are divided on the Moonbirds phenomenon, this could be the liquidity boost the market needs.
Related: Is the Increase in OpenSea and Blue Chip NFT Sales an Early Sign of an NFT Bull Market?
NFT projects are getting ready to launch
Regular NFTs have stagnated, and overall market sentiment has shifted from traditional roadmaps and quick action to strategic investments in projects and teams that are attuned to what investors expect in the years to come. NFT investors keep an eye on projects that seamlessly intersect with culture and community while providing value.
Therefore, once again, creators and developers are moving away from static PFPs and aiming to provide more dynamic features to respective collectors.
Take for example Anata NFT which launched on April 21st and is a collection of 2,000 avatars created to be impersonated by their owner. The Anata NFT uses a webcam to track and simulate facial expressions and other movements while the anime-inspired NF