The total market capitalization of the NFT space approaches $7 billion, with Ethereum-based CryptoPunks and Pudgy Penguins often at the forefront. Yuga Labs’ CryptoPunks alone represent 29% of the overall NFT pocket’s total valuation, with its ground value not too long ago topping 50 ETH.
The average daily trading volume of NFTs, meanwhile, is 36% lower at $15.54 million over the same period. While the decrease in transaction volume is cause for concern, many experts like David are still bullish on NFTs.
Evan Kuhn, President of DeLorean Labs, expressed optimism about the real world utility NFT collections have to offer.
"NFTs are now being used to manage access, automate rules, and assign roles within on-chain ecosystems. For example, some marketplaces are using NFTs as credentials. They can prove eligibility for transactions, enforce compliance checks, or grant specific permissions, all directly through smart contracts. That is a major step forward from the days of profile pictures tied to meme coins." - Evan Kuhn
Kuhn highlighted Pudgy Penguins as an example of an NFT collection bridging digital identity with physical retail and layering in token-based engagement. This indicates a greater level of maturity in the NFT ecosystem, evolving past speculatory attraction.
Arthur Hayes, co-founder of BitMEX, predicts that NFTs will have a stronger Ethereum cycle when measured by US Dollar gains. This estimate by examining the market for social status. He implies that investments in decentralized arts have the potential to outpace the growth fueled by Ethereum’s fundamentals.
As NFT collections like CryptoPunks and Pudgy Penguins have entered the mainstream consciousness, the speculative allure has been front-and-center.
"bridging digital identity with physical retail, while also layering in token-based engagement," - Evan Kuhn
