Recently, the non-fungible token (NFT) market has shown a strong recovery momentum, becoming a highlight in the field of encryption. The total market capitalization of the NFT sector has surpassed 6.3 billion USD, doubling from before, indicating that investor enthusiasm in this field is on the rise.

This phenomenon is accompanied by the flow of funds from mainstream cryptocurrencies such as Bitcoin to NFTs and other smaller cryptocurrencies (commonly referred to as "shitcoins"). Market sentiment has significantly warmed, particularly highlighted by the performance of well-known NFT projects like CryptoPunks and Moonbirds, which have seen substantial price increases. Large investors (commonly known as "whales") are actively entering the market, driving a significant increase in trading volume. At the same time, competition among NFT trading platforms like Magic Eden is also becoming increasingly fierce.

Some market analysts believe that this could be the start of a new bull market after the Bitcoin halving event in 2024, predicting that the market may peak in the first or second quarter of 2025. However, there are also voices reminding investors to remain vigilant. The NFT market has always been highly volatile, and there are currently signs of net outflow of major funds, which has raised some concerns.

Although the frenzy of the NFT market and the obvious rotation of funds indicate that the entire encryption market is becoming active, there is still controversy over whether we have truly entered a bull market. Investors should closely monitor market trends and weigh risks against opportunities. In this uncertain environment, a rational and cautious investment attitude is particularly important. How the market will trend in the future requires more time to verify.