🟢 Bullish Case: A Leading Indicator
1. NFTs as Cultural On-Ramps: NFTs often lead sentiment shifts, especially with mainstream interest. When NFTs surge, it can signal renewed public curiosity in crypto.
2. Rising Activity on Ethereum & L2s: NFT trading volumes on Ethereum and platforms like Blur, OpenSea, and Magic Eden are picking up — usually a precursor to broader market momentum.
3. Institutional + Brand Adoption: Major brands (e.g., Nike, Starbucks, Reddit) continue experimenting with digital collectibles — this shows long-term conviction despite past cycles.
4. Crypto Market Cycles: Historically, NFT booms align with altcoin rallies. The resurgence may precede another rotation into DeFi, gaming tokens, and L1 ecosystems.
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🔴 Bearish Case: A Fleeting Hype
1. Still Speculative: Much of the recent rebound appears driven by hype (airdrops, meme NFTs) rather than organic user growth or utility.
2. Liquidity Fragility: NFT markets are less liquid than fungible tokens. Big price swings are easier to engineer and don’t always reflect broader conviction.
3. Macro Headwinds: If broader crypto sentiment dips again due to rate uncertainty or regulatory risk, NFTs will likely retrace faster than BTC or ETH.
4. Past Burnout: Many investors remain cautious after the 2021 blow-off top — retail FOMO hasn’t returned at scale yet.