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Crypto Market Shows Signs of Recovery with Surging Crypto Prices, NFT Sales

Ruholamin Haqshanas
Last updated: | 2 min read
Source: Adobe / Luisa

The crypto market is displaying promising signs of recovery following an extended bear market with surging crypto prices and NFT sales.

Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market cap, have experienced significant price surges, each gaining 30% and 28%, respectively, over the past 30 days. 

Likewise, the total crypto market capitalization has risen by approximately 31% to reach $1.41 trillion during the same period.

NFT Market Sees a Resurgence

The NFT space, which also experienced a decline after its previous hype cycle in 2021 and 2022, has witnessed a resurgence. 

According to CryptoSlam data, total NFT sales have increased by 64% in the past month. 

Ethereum, Bitcoin, and Solana emerged as the top three blockchains in terms of NFT sales volume, with all three experiencing sales growth during this timeframe (44%, 1,222%, and 56% respectively).

Furthermore, the crypto venture capital landscape is regaining momentum after six consecutive quarters of declining investments in Web3 companies. 

This bullish trend is emerging despite the lingering market downturn that has dampened consumer, founder, and investor enthusiasm in the crypto industry.

In another bullish movement, digital asset investment products saw inflows of $293 million last week, bringing this seven-week run of inflows past the $1 billion mark and leaving year-to-date inflows at $1.14 billion. 

This makes 2023 the third-highest yearly inflows on record.

ETF Optimism Further Drives Market Sentiment

The optimism around the launch of a spot Bitcoin ETF has further benefited the recent rally in crypto markets, which saw the flagship cryptocurrency reach as high as $38,000.

Analysts at financial services firm Cantor Fitzgerald believe the long-awaited spot BTC ETF is inching closer to reality.

The company, known for its prime brokerage and investment banking services, has grown confident in the approval of applications from asset managers seeking to launch a spot ETF for Bitcoin.

The SEC has been hesitant to approve a spot bitcoin ETF due to concerns about potential manipulation on offshore spot platforms.

However, Cantor Fitzgerald believes that the market surveillance procedures proposed by new applicants could address these worries and sway the SEC towards approval. 

As reported, Ripple CEO Brad Garlinghouse believes there will be a flood of new capital pouring into crypto if a spot BTC ETF is approved.

“An ETF getting approved could create a lot of capital flowing into the market,” he said in a recent interview with CNBC.

However, the crypto veteran also mentioned that it is hard to balance these positive developments against other macro factors, namely wars in the Middle East and Europe.

“I go back to kinda first principles around big picture,” Garlinghouse added, noting that the crypto industry needs regulatory clarity and “lots of” utility to thrive.