NFT boom triggers parabolic rallies in Chiliz (CHZ) and Flow

Strong hands view a correction in an uptrend as a buying opportunity and data from CryptoQuant shows that Bitcoin (BTC) whales have been buying near $48,000. This activity can be seen in the large Coinbase outflows, most of which went to custody wallets and this suggests that the institutional investors believe the Bitcoin rally has room to run.

Even Kraken CEO Jesse Powell is ultra bullish on Bitcoin. In a recent interview with Bloomberg TV, Powell said that Bitcoin could reach $1 million over the next ten years if the digital asset overtakes gold as a store of value.

Crypto market data daily view. Source: Coin360

While Bitcoin price bounces between the $47,000 to $51,000 range, non-fungible tokens (NFT) have been taking off and appear to be competing with the DeFi sector in terms of transaction volumes and token appreciation. NFTs from popular artists are being snatched up in minutes, which shows a strong appetite from the users. Along with the artwork, sports-oriented collectible NFTs are also quickly gaining in popularity.

Let’s analyze the fundamentals of a few NFT projects to determine whether the rally is on the verge of topping out or if there is room for further extension.