NFT market continues to shrug off broader macro rout

As macro anxieties ripple through cryptocurrencies and stock indexes, the market for non-fungible tokens continues to see meaningful gains in floor prices and volumes. 

Stocks gyrated during Monday’s trading session and the benchmark Dow Jones ended the day in the green after dropping by 3.25% around midday. Worries about the US Federal Reserve’s plans to scale back stimulus and raise interest rates pulled stocks lower earlier Tuesday, with the Dow Jones up a mere 0.07% at press time.

Bitcoin, subject to a steep price decline since the start of the year, is currently trading hands at around $37,300 on Coinbase. 

Meanwhile, the NFT market appears to be offering a sort of oasis for investors and speculators. The floor price for Bored Ape Yacht Club (BAYC) and CryptoPunks are both up in the last 24 hours, according to data from NFT Price Floor. The floor price for CryptoPunks is up 13.33%, while BAYC is up 8.14%. 

Volumes for NFT marketplaces have also ticked up. OpenSea set a record for monthly volumes this week, surpassing its August record after reaching more than $3.2 billion in total monthly volume, according to The Block’s Data Dashboard. 

The divergence between NFTs and the broader crypto ecosystem illustrates the specific characteristics of the former, which are less liquid than tokens and closely tied to specific communities that are incentivized to hold. 

As noted by The Block Research’s Thomas Bialek, the US dollar-denominated value of NFTs has outperformed the price of ETH, further suggesting a decoupling between NFTs and major cryptocurrencies.