Long push: Data tells you whether the NFT market is about to start a new bull market

Data shows if NFT market will start new bull market

Source: Twitter

Author: @0xPrismatic, Head of DelphiDigital NFT Research

Translation: Yvonne, MarsBit

Note: This long tweet was posted by @0xPrismatic.

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Lately, the NFT market has seen a rebound. This begs the question:

Are we on the cusp of another crazy NFT bull market?

Let’s take a look at what the data tells us.

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To me, the most important metric is the number of weekly active traders.

It represents how many people are actively involved in the NFT space.

Remember the bull market from July 2021 to February 2022? We saw the number of weekly active traders climbing every week.

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Nowadays, there are about 72,000 weekly active traders.

Compared to the peak of over 250,000 in 2022, the market has seen a significant drop, down more than 50% since January of this year.

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The second metric is weekly market trading volume.

While this seems like an important metric, I don’t place much emphasis on it.

Blur’s token mining caused a significant deviation in trading volume (the orange part in the following figure is Blur).

Overall, there is no indication of any trend indicating an impending bull market in terms of trading volume.

5/

Before we draw our conclusions, let’s take a look at the third metric: Google’s interest in the term “NFT.”

NFTs are driven by retail investors, and this is a good way to measure people’s thoughts.

Unfortunately, NFTs no longer seem to be a hot topic.

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So, what is the main conclusion?

1. The number of weekly NFT traders is trending downward;

2. NFT trading volume is still flat or declining;

3. Google search shows that people’s interest in NFTs is waning.

It looks like we won’t be entering an NFT bull market anytime soon until these metrics start to rebound.

Patience is the key to the game. Every low point lays the foundation for the next upswing.

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