NFT Market Capitalization Surpasses $6 Billion... High Expectations Amid Whale Purchases

The market capitalization of the non-fungible token (NFT) market has surpassed $6 billion.

According to The Block on the 21st (local time), NFT market capitalization jumped 16.9% over the past 24 hours to reach $6.04 billion. This is the highest level since last February. Trading volume also surged rapidly. According to CryptoSlam data, global NFT trading volume soared 154% in the same period, reaching $41.4 million.

Of particular note in the industry today was a whale investor (0x1bb351) who used 2,080 Ethereum (ETH) to purchase 45 CryptoPunk NFTs. CryptoPunk is a well-known NFT based on Ethereum.

Nick Luck, Director at LVRG Research, stated, "The recent rise in the virtual asset (cryptocurrency) market has also triggered price increases in the NFT market," adding, "Investors purchasing NFTs such as CryptoPunk are driven by expectations of a secondary rally."

Vincent Liu, Chief Investment Officer (CIO) at Kronos Research, commented, "This latest whale purchase reflects investor confidence and growing demand for blue-chip NFTs," and predicted, "With a sudden influx of liquidity, the premium NFT market could be reignited."

However, there were still calls for caution. Minjeong, an analyst at Presto Research, said, "The NFT market has benefited from the bullish sentiment in virtual assets," but added, "The reason behind the large-scale CryptoPunk purchase is still unclear." She further remarked, "Since the bullish cycle of 2021, NFTs have shown weakness. While investor demand has returned, it cannot yet be seen as the beginning of a full-fledged bull market."