NFT market capitalization approaches 7 billion USD, with Ethereum CryptoPunks and Pudgy Penguins dominating.

The cryptocurrency market has recently undergone significant changes, with investors shifting funds from Bitcoin (BTC) to altcoins such as Ethereum (ETH) and other crypto assets, which has sparked a new wave of interest in non-fungible tokens (NFTs), bringing their market capitalization close to 7 billion dollars. In this new round of pump, Ethereum-based NFTs, such as CryptoPunks and Pudgy Penguins, have become frontrunners, indicating that the NFT market may be entering a new stage of development.

NFT market space heats up: market capitalization surges, Ethereum NFTs dominate

(Source: CoinGecko)

CoinGecko data shows that in the past 24 hours, the NFT market capitalization surged over 2%, reaching $6.93 billion, indicating renewed investor interest. However, during the same period, trading volume decreased by 36%, to $15.54 million, indicating a short-term cooling in the market.

Ethereum-based NFTs dominate the market, such as CryptoPunks and Pudgy Penguins, with market capitalizations of $2.05 billion and $520 million, respectively. Notably, these NFT collections account for 29% and 8% of the total market valuation. The floor price of CryptoPunks has surpassed 50 ETH, valued at over $200,000, and has increased by 38% last month, reflecting heightened speculation.

Ethereum price increase drives NFT market, utility enhancement

With the price of ETH rising again, the prices of NFTs based on Ethereum have also increased. BitMEX co-founder Arthur Hayes estimates that, in terms of dollar gains, the performance of NFTs (especially CryptoPunks) will surpass the Ethereum cycle, as he mentioned in an article he published on social media last week. Arthur also agrees with the prediction regarding the social status market, believing that the capital growth rate in the decentralized art sector may exceed that driven by fundamentals in Ethereum.

Evan Kuhn, the president of DeLorean Labs, expressed optimism about the potential utility of NFT collectibles such as CryptoPunks and Pudgy Penguins, which may overshadow the speculative appeal reported by FXStreet last week.

NFTs are currently used for access management, automated rules, and role allocation within the on-chain ecosystem. For example, some markets are using NFTs as credentials. They can prove transaction eligibility, perform compliance checks, or grant specific permissions, all of which are directly implemented through smart contracts. This is a significant step forward from the era of tying avatars to meme coins.

Evan further emphasized the higher maturity of the NFT space, citing the chubby penguin as an example, "connecting digital identities with physical retail while also increasing token-based participation."

Conclusion:

The NFT market's market capitalization is approaching $7 billion, with Ethereum's CryptoPunks and Pudgy Penguins dominating, indicating renewed investor interest in NFTs. With the rise in ETH prices and the enhancement of NFT utility, the NFT market is expected to enter a new phase of development.