With the NFT market continuing to break record sales week after week, recent data now indicates that profits made from digital collectibles might be moving into altcoins and the DeFi market.
With the rapidly changing cryptocurrency markets, investors have now shifted their stance from non-fungible tokens into DeFi-based tokens.
Data from TradingView shows that the price of DeFi Perpetual index tokens has been on a rise after dipping down to $5,331 on July 20. As of Sept 2, that number has rallied by over 138% to a daily high at $12,771.
This indicates that profits made from non-fungible tokens are now moving back into the DeFi ecosystem as the price of digital collectibles is on the decline.
In fact, the daily average price floor of NFTs sold in the market reached a high of 1.02 Ether (ETH) on Aug. 29 and has since pulled back to 0.5 ETH. Besides, the number of DeFi users has also continued to grow over time.
Another reason for traders shifting to DeFi from NFT is due to the rising price of Ether (ETH) cryptocurrency, with most of the top DeFi protocols located on Ethereum, Ether (ETH) is widely used to stake and purchase other tokens in the DeFi ecosystem.
Ether (ETH) has rallied 125% since reaching a low of $1,706 on July 20, with its most recent surge of 23% pushing its price from $3,134 on Aug. 30 to a high at $4,029 on Sept. 3. Meanwhile, the total value locked (TVL) on all DeFi protocols has reached a new record high of $171.5 billion on Sept. 2, indicating traders are getting increasingly interested in DeFi tokens.
Non-fungible tokens have become extremely popular over the past month, with a great number of NFTs selling for hundreds of thousands or millions of dollars in crypto.
Data from nonfungible.com’s market history indicates that on August 29, the seven-day weekly sales broke an all-time high (ATH) at $1 billion in overall sales across NFT collections. However, that number has slid down to $821 billion this week.