And just like that, the NFT market isn’t dead after all. Doodles, one of the biggest NFT projects, is leading the charge, having recently seen a tremendous $10.7M increase in valuation. An event that has people particularly excited is the project’s upcoming token generation event and airdrop. That excitement is driving a Doodles-related renaissance and inciting Doodles-related speculation crypto-worldwide. Token ATH! is back with a new mission, to break down what’s driving this historic growth. We’ll dig into what this spells for the future of NFTs too.
The DOOD Token Effect
What’s all the buzz about Doodles? The current hype is due to the current launch of its native token DOOD integrated into the Solana blockchain. This strategic move is designed to leverage Solana’s blazing-fast transaction speeds and negligible fees. Consequently, trading has reached unprecedented levels of accessibility, making this decision a brilliant one. It’s drawn in long-time Doodles lovers as well as newcomers raring to join in.
Community-Centric Approach
One key reason behind the excitement is the 68% of the total DOOD token supply allocated to the community. This allocation is broken down as follows:
- 30% to the Doodles community
- 13% to the New Blood community
- 25% as its ecosystem fund
This new distribution model further emphasizes Doodles’ dedication to their growing community by rewarding long-term, loyal holders of Doodles while encouraging active participation in their ecosystem. Today, with the launch of $DOOD on Solana, friction is drastically lowered for new users. This is a huge improvement that removes a significant barrier for their entry into the ecosystem!
Speculation and Potential Benefits
As a result, the DOOD token promise is fueling demand for Doodles NFTs. And buyers are snapping these NFTs up. They are looking forward to receiving these airdrops and gaining access to exclusive features and utilities within the Doodles ecosystem. According to Martin, $DOOD could be a very competitive and valuable asset in the market, which may positively impact the market performance of Doodles. Additionally, like the previous Solana launch, the creation of cross-chain interoperability lays the groundwork for future development that will help broaden the audience and accessibility of the Doodles ecosystem. Rewards to current holders and contributors motivate users to hold and engage with $DOOD.
NFT Market Rebound: A Glimmer of Hope?
Despite how impressive Doodles’ performance is, it’s important to take a step back and look at the bigger picture on the NFT market. So far it looks like ‘The Great Resignation’ market rebound really is happening! If so, that would be a portent of maturity and wider adoption in 2024.
Factors Driving Potential Growth
A number of signs are indicating that NFTs could be bracing for a comeback. Thirty-two point four percent of those investors intend to hold onto their NFTs for no less than three years. This uncommon level of commitment reflects their belief in the long-term value and potential of these assets. Any advancement in the underlying technologies, including blockchain, increases the utility and long-term benefits to NFT investors. This increase will fuel significant acceleration and catalyze broader adoption.
Changing Investor Behavior
Keep in mind that investor priorities are changing. Even more ominous, 42.2% of investors are willing to dump their NFTs onto the market. As soon as their profits exceed 20%, they intend to leave the market. This indicates a short-term, profit-seeking focus from some investors with others choosing to stay the course and hold onto their assets for long-term appreciation.
Declining Participation: A Cause for Concern
Against this great momentum for Doodles, and the possible overall market recovery, there are some concerning trends when it comes to buyer participation. Recent data indicates a decline in both buyer and seller activity, suggesting a potential cooling off period in the market.
Mixed Signals in Market Activity
NFT sales volume decreased 4.38% to $93.6M over the last 7 days. The number of buyers reached 560,845, marking an increase of 24.38%. Another source states a 75-78% decline in buyer participation. There were only 85,650 sellers, a 75% decrease compared to the same week last year. Even with the rebound in buyer activity, the overall dollar volume of NFT sales fell by almost 8%. It landed right around $99.9 million. Total transaction volume fell 9.12% to roughly 1.44 million. This decrease indicates that citizens are purchasing less cash in each order.
Interpreting the Data
With this ranging data comes a revelation of the volatility and complexity that is the NFT market. The increase in buyers bodes well for continued expansion in the market. Yet, amid this catastrophe, the continued and sharp drop in sellers’ participation and evidence of transactional volume shows grim times remain. The drop in average spend per transaction goes to show all the more that buyers might be taking a more cautious and selective approach to their buying habits. Provided the securities are publicly registered, it is very important for these investors to stay alert and do their homework before investing in any new securities.
Token ATH ! will keep an eye toward the NFT market more broadly and report on important happenings and trends as they develop so stay tuned! Stay tuned for more insights and analysis.
