The non-fungible token (NFT) market experienced a meteoric rise in 2021, followed by a significant downturn the following year. This month, NFTs are showing signs of revival. Yuga Labs collectibles and others are up decent amounts, largely due to positive market sentiment sparked by Trump's election victory.
Non-fungible tokens (NFTs) have been pronounced dead several times, but in the years of the downturn, projects have been working on technological advancements, expanding use cases, and maturing their ecosystem. Many are sitting on substantial treasuries from VC funding rounds or the launch of secondary collections. Importantly, the online communities of many of the blue NFT projects have remained active, contributing to a positive sentiment.
The largest NFT ecosystem: Yuga Labs is among the biggest movers
NFTs under the umbrella of Yuga Labs performed exceptionally well, especially Bored Ape Kennel Club (BAKC), which had the highest 30-day change (+183%) in floor price. CryptoPunks, also part of the IP owned by Yuga Labs, had the highest volume, but this is due to a floor price of over 150,000 USD for the collection. Amidst the regained momentum, Yuga Labs' acquisition of the NFT ticketing application tokenproof was announced on X.
During the NFT bear market, Yuga Labs focused on the development of ApeChain, which will serve as the foundation for Yuga Labs' projects to improve flexibility and user engagement in web3 gaming and digital entertainment. ApeChain is being developed with the Wire network, which enables gas-free transactions at 10,000 transactions per second (TPS). Notably, Wire features advanced AI integration and supports the AI agent economy, enhancing creator tools and digital experiences.
An AI agent is a system or program that can autonomously perform tasks on behalf of a user through the use of available tools and decision-making based on its environment. These agents can perform various functions, from simple tasks to complex problem solving, and often improve their performance over time through learning. Goatseus Maximus (GOAT), a cryptocurrency project valued at over $1 billion, uses such an AI bot called Truth Terminal. It interacts on social media, builds followers and promotes tokens
Notable developments throughout communities
Animoca Brands, a Hong Kong-based game software and venture capital company founded in 2014, announced an investment in Pudgy Penguin's parent company, Igloo Corp. The amount of the investment was not disclosed. As of 2022, Animoca has made more than 340 investments valued at more than $1.5 billion. Notable investments include Axie Infinity, OpenSea, Dapper Labs and others. Similar to the ApeChain, Pudgy Penguins is also building a personal blockchain, the Abstract Chain. Abstract is intended to bring the next generation of crypto users onto the chain.
Doodles is expanding it's Web2 partnerships. Doodle-branded cups have entered McDonald's across the US, bringing their NFT art into the mainstream. This is not the first major collaboration for Doodles. They have previously partnered with Crocs, G-Shock, and the Coachella music festival. Another seemingly stagnant project, the Cool Cats, has also made a comeback. The project just released its first season of an animated comic, giving its IP a use case. And it looks like the development of the Nakamigos CLOAKS game is on track for a December 2024 release.
https://twitter.com/doodles/status/1857062234037358869
Not everybody survived the bear market
RTFKT, the digital fashion and technology company acquired by Nike in 2021, is shutting down operations. The company announced its plan to wind down just three years after the acquisition. This leaves holders sitting on NFTs with no further use case. The crypto Twitter community is outraged by the " rug" orchestrated by the corporation. Another surprising announcement came from the Kraken exchange, which revealed that it would be shutting down its NFT marketplace on November 27. Users will have three months to withdraw their NFTs until the final deadline of February 27, 2025. After this date, the Kraken NFT marketplace will be completely shut down, and any NFTs not withdrawn will no longer be accessible through Kraken.
The RTFKT files.
Here is the story of the rise and fall of a billion dollar company in just three years.
A story of alleged insider trading, broken promises and outright lies 🧵👇
(1/19) pic.twitter.com/66GD2PKifu
— wale.moca 🐳 (@waleswoosh) December 3, 2024
Despite many positive developments and project milestones, the total market capitalization of NFT is still far from the previous all-time highs in 2021. However, the price increase so far is a positive first sign. The low prices have provided entry points for new buyers, liquidity and a fresh spirit in the market. Furthermore, the regulatory landscape is expected to change positively when Trump takes office.
