NFT market is currently showing signs of a strong recovery with many blue-chip collections experiencing a rise in trading volume and floor prices. This renewed interest in digital collectibles comes after a period of relative stagnation, which opens up new questions about the future of NFTs as both art and investments.

At the forefront of this NFT market comeback is the Bored Ape Yacht Club (BAYC) collection. In the last 24 hours alone, BAYC NFTs floor price has risen by 15% to 70 ETH or around $140,000 at the current Ethereum prices. This increase in value has been coupled with a dramatic rise in trading volume, with several high profile transactions occurring on some of the largest NFT marketplaces.

One of the collections that are experiencing the revival of interest is CryptoPunks, which is one of the first and the most famous NFT projects. CryptoPunks’ floor price has increased by 10% in the last 24 hours and now stands at 65 ETH. This increase has come after a number of high profile sales such as the rare Alien Punk which was sold for more than $1. 5 million in a private transaction.

This is not to mention that the NFT market has not only revived these legacy collections. Some of the newer projects have also witnessed a rise in the floor prices and trading volume as well. For instance, the Azuki collection, which contains anime-like art and has elements of Web3 integrated into it, has seen its floor price go up by 20% within the last day.

The following are some of the reasons that can be attributed to this new interest in NFTs. First, the overall bullish sentiment of the cryptocurrency market has had a domino effect on the NFT market. Since the value of BTC and ETH has been on the rise, investors are more willing to invest in high-risk assets such as NFTs.

Second, there has been a high level of institutional investment in the NFT space in the recent past. More and more traditional auction houses such as Christie’s and Sotheby’s have also been increasing their sales of digital art, which has further cemented the market’s credibility. Furthermore, the conventional art galleries and museums are also trying to find out how they can include NFTs in their art collections and display.

Another key factor that has also contributed to the adoption of NFTs and the public’s interest is the gaming industry. A number of leading gaming firms have also revealed their intentions to adopt NFTs within their platforms, thus allowing players to obtain and trade special assets and events within the games. This has given rise to new ways of owning and creating value in the midst of gaming and NFTs.

However, it is crucial to mention that the NFT market is rather unstable and based on speculation. While collections of the so-called ‘blue-chip’ NFTs have recently experienced a rise in value, numerous other projects remain stagnant with low trading volumes and decreasing floor prices. NFT market is still relatively new, and therefore, investors are advised to exercise a lot of caution when investing in this market.

However, there are various problems that can affect the growth of the NFT market, but the overall perspective is rather promising. It is anticipated that as the technology progresses and gains more applications, NFTs will have a significant part in the digital economy. Ranging from digital artworks and collectibles to virtual properties and identification, the uses of NFTs are almost limitless and still unknown.

Thus, in the future, we can predict that the further development of the NFT market will be accompanied by the development of such trends as fractional ownership, more efficient marketplaces, and better integration with other blockchain platforms. Such advancements may assist in overcoming some of the current issues with NFTs and open the door to their application in various industries.