Recovery of NFT and Memecoin Markets Following Prolonged Cryptocurrency Slump

The non-fungible token (NFT) and memecoin markets have seen modest rebounds over the past week, coinciding with a general improvement in risk sentiment within the cryptocurrency arena.

Key Takeaways

NFT market capitalization rose from approximately $3.5 billion to $3.9 billion, marking nearly a 12% increase in just one week.
Memecoin valuations expanded from $47 billion to $52 billion, indicating an 11% growth in the same timeframe.
While some NFT collections saw sales increases, top brands like Bored Ape Yacht Club continued to decline.
All top 10 memecoins experienced gains, with Dogecoin showing the highest increase of 14.2%.

NFT and memecoin markets recover after month-long crypto slump

Following a lengthy slump in the cryptocurrency markets, both NFTs and memecoins have demonstrated signs of recovery. Data indicates a significant increase in market capitalization for these sectors, providing a glimmer of hope for traders amid ongoing macroeconomic uncertainties.

NFT Market Performance

According to CoinGecko data, the global NFT market capitalization increased from around $3.5 billion on November 5 to $3.9 billion at the time of this writing, marking an approximate 12% rise within a week. The same positive trend emerged for memecoins, where CoinMarketCap reported that their combined valuation rose from $47 billion to $52 billion, representing an 11% uptick during the same period.

These changes reflect a resurgence in speculative interest among traders, who appear to be moving back toward higher-risk assets after several weeks of reduced activity, all while uncertainty regarding the unresolved US government funding situation looms over the markets.

This week's gains follow a sharp downturn in the overall NFT market capitalization. Previously, Cointelegraph reported a 46% drop in global NFT market value from October 5 to November 5.

Seven-day global NFT market cap chart. Source: CoinGecko

Select NFT Collections Show Mixed Results

Sales data from tracker CryptoSlam indicates that only a handful of the top 20 NFT collections saw significant sales increases. For instance, CryptoPunks registered a 22.8% rise in sales over the past week, approaching $3 million. Meanwhile, the Mutant Ape Yacht Club and Milady Maker experienced growth rates of 36.5% and 80%, respectively. The Polygon-based Courtyard also rose over 14%, while smaller Ethereum projects like Lil Pudgys gained approximately 24%.

Conversely, prominent collections like the Bored Ape Yacht Club (BAYC), Pudgy Penguins, and Moonbirds have continued their decline. BAYC's sales fell by 10.3% in the past week, with Pudgy Penguins and Moonbirds seeing 23% and 2% decreases, respectively.

Among the top 10 blockchains ranked by NFT sales, most recorded a decline in sales volume ranging from 6% to 42%. However, three chains distinguished themselves this week: BNB Chain (+53%), Polygon (+9.3%), and Flow (+43%). This performance disparity highlights that the current uptick in NFTs is concentrated mainly among specific collections exhibiting stronger momentum, while overall liquidity and trader engagement remain limited.

Blockchain by NFT sales volumes. Source: CryptoSlam

Memecoin Sector Experiences Widespread Gains

In contrast to NFTs, where gains were limited to select collections, the memecoin sector showed a more widespread increase, with all top 10 memecoins by market capitalization recording positive movements over the last week. Notably, Dogecoin, the official memecoin of former US President Donald Trump, emerged as the strongest gainer among large-cap memecoins, increasing by 14.2% during the past seven days.

Top memecoins by market capitalization. Source: CoinMarketCap

In summary, while the NFT market shows mixed recovery, the memecoin market has exhibited a broader resurgence, hinting at a general shift in trader sentiment within the cryptocurrency landscape.