In recent weeks, digital asset prices have surged, with Bitcoin climbing from $28,000 to $35,000. However, the NFT market has not seen a similar rise. Floor prices for major NFT collections like CryptoPunks and Pudgy Penguins have dropped 4% and 5% respectively in the past week.

The Nansen NFT-500 index, which peaked at 1,700 in October, has declined to 308. On October 24, both the total number of buyer addresses (7,200) and first-time buyers (920) reached yearly lows.

There are some positive signs, though. Trading volumes appear to have bottomed out. For the week ending October 9, volumes on the Ethereum mainnet hit a yearly low but have since rallied, with over $85 million worth of NFTs traded or minted in the week ending October 23.

There’s also an increase in “active projects” – collections with substantial sales. On October 8, there were 41 active projects, which has risen to 80 today.

Despite the overall crypto rally, the NFT market remains sluggish, reflecting a possible shift in investor interest.