# NFTs Are NOT Back… Yet! *PLUS: The Next Pudgy Penguins?* By [Web3 Academy](https://paragraph.com/@web3academy) · 2023-12-06 nft, cryptocurrency, web3 --- **GM DOers!** 😎 The NFT blue-chip index – reflecting the market cap of top NFT collections – has just reached a 3-month high. ![](https://storage.googleapis.com/papyrus_images/2e76788cf864c8c38c93c62f5b8a8a1a.png) At the same time, the overall NFT market cap went from ~$5 billion to almost $10 billion in 3 months.  ![](https://storage.googleapis.com/papyrus_images/ec69df0289af318c22c1cf37c45c4676.png) Collections like Pudgy Penguins (up from 6 to 10 $ETH) and MadLads (up from 40 to 220 $SOL) have led the way. [![User Avatar](https://pbs.twimg.com/profile_images/1682245611767181313/uJJuH8Rd_normal.jpg)](https://twitter.com/web3academy_) [Web3 Academy 🟣](https://twitter.com/web3academy_) [@web3academy\_](https://twitter.com/web3academy_) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/web3academy_/status/1732074951144771815) JUST IN: [@MadLadsNFT](https://twitter.com/MadLadsNFT) hits 200 $SOL. Insane Source: [@solsniperxyz](https://twitter.com/solsniperxyz) ![](https://pbs.twimg.com/media/GAmQ3fVXUAIr45y.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 2](https://twitter.com/web3academy_/status/1732074951144771815)[ 22:00 • 5 Dec 2023 ](https://twitter.com/web3academy_/status/1732074951144771815) Apart from the impressive price surge, Okay Bears, an NFT collection on Solana, just partnered with freaking ZARA, and nobody’s talking about it. [![User Avatar](https://pbs.twimg.com/profile_images/1693723245177180160/I2jz4YQ__normal.jpg)](https://twitter.com/okaybears) [Okay Bears](https://twitter.com/okaybears) [@okaybears](https://twitter.com/okaybears) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/okaybears/status/1730244524440498399) Okay Bears, now available worldwide in 1,149 [@ZARA](https://twitter.com/ZARA) stores across 74 countries — a momentous leap into mainstream culture. ![](https://pbs.twimg.com/media/GAMPYmkWwAAQG_L.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 2,686](https://twitter.com/okaybears/status/1730244524440498399)[ 20:46 • 30 Nov 2023 ](https://twitter.com/okaybears/status/1730244524440498399) Today, I’ll go over  * Are NFTs back? * What’s causing this pump? * Will Okay Bears be as big as Pudgy Penguins? Let’s dive in. ⏬ * * * 🤝 [](https://bit.ly/paragraph_nl)[**Together with Paragraph**](https://bit.ly/paragraph_nl) [![](https://storage.googleapis.com/papyrus_images/919d4b01f3b4a976fef2bb4781b2c311.png)](https://bit.ly/paragraph_nl) Paragraph powers modern newsletters, enabling readers to own their content and creators to share revenue with fans. Web3 Academy has already transitioned to Paragraph because it’s the future of newsletters. If you're a creator, writer, or keen reader, explore Paragraph's early opportunities! [Check Out Paragraph Today](https://bit.ly/paragraph_nl) * * * **Are NFTs Back?** 🚀 --------------------- When you’re starting to see posts like these, you should step back and ask yourself… Am I in a hype cycle? [![User Avatar](https://pbs.twimg.com/profile_images/1593307551457738752/xT7UmPH0_normal.jpg)](https://twitter.com/rektmando) [Mando](https://twitter.com/rektmando) [@rektmando](https://twitter.com/rektmando) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/rektmando/status/1732031357772009762) A lot of money is about to flow back into NFTs You are underexposed ![](https://pbs.twimg.com/tweet_video_thumb/GAlpQmLaIAAnJ86.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 372](https://twitter.com/rektmando/status/1732031357772009762)[ 19:07 • 5 Dec 2023 ](https://twitter.com/rektmando/status/1732031357772009762) Then you come to Web3 Academy to find your answer.  Here’s the deal… While NFTs are up in price, there are no new people entering the NFT space. Check this out. The amount of NFT buyers/sellers are still at yearly lows. ![](https://storage.googleapis.com/papyrus_images/bf0ba0cb4f571083712d1c57d4b1450f.png) If new people were coming into the markets, this chart would look very different (up only). For NFTs to ‘be back’, we need retail investors to re-enter the markets, just like they did in 2021 when everything went nuts.  We’re nowhere near those levels yet, although [high-profile influencers and brands are starting to bring awareness to NFTs](https://paragraph.xyz/@web3academy/are-nfts-back) again (Elon Musk, Joe Rogan, The Simpsons, Mark Cuban, etc…) GoogleTrends is a good metric to track whether or not mainstream people are looking to come back… But, as you can see, the interest for Bitcoin (red), crypto (yellow), Binance (green), NFTs (blue), or web3 (purple) has been flat for the past 12 months.  ![](https://storage.googleapis.com/papyrus_images/ea6d4bb7e3be481a458e579e7b94435d.png) Retail’s not back! So what’s actually causing this NFT pump?  ### **First Up, OGs Are Buying** FlamingoDAO has been on an NFT shopping spree as of late, spending at least 270 $ETH.  [![User Avatar](https://pbs.twimg.com/profile_images/1561354964534018049/T9lKN_2c_normal.jpg)](https://twitter.com/Tyler_Did_It) [TylerD 🧙‍♂️](https://twitter.com/Tyler_Did_It) [@Tyler\_Did\_It](https://twitter.com/Tyler_Did_It) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/Tyler_Did_It/status/1730334569876865206) Flamingo DAO is going on quite the art buying spree, spanning generative art, AI, Beeple, XCOPY and more! So far they've picked up: \-4 Beeple editions \-2 Grifters \-2 Elevated Deconstruction \-5 Genesis by Claire Silver \-7 Fragments of an Infinite Field \-3 Life in West America \-6… ![](https://pbs.twimg.com/media/GANiCi1WcAE7b0t.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 251](https://twitter.com/Tyler_Did_It/status/1730334569876865206)[ 2:44 • 1 Dec 2023 ](https://twitter.com/Tyler_Did_It/status/1730334569876865206) At the same time, Mocaverse has pumped more money into $APE, a token that directly impacts the NFT market. [![User Avatar](https://pbs.twimg.com/profile_images/1591975912173899778/YkUIx50f_normal.jpg)](https://twitter.com/MocaverseNFT) [Mocaverse💼🪐](https://twitter.com/MocaverseNFT) [@MocaverseNFT](https://twitter.com/MocaverseNFT) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/MocaverseNFT/status/1729787565488685145) Given recent voting activities and with the goal to create balance, [@animocabrands](https://twitter.com/animocabrands) will increase Mocaverse [@apecoin](https://twitter.com/apecoin) delegation from 3.5M $APE to 6M $APE Looking forward to building a better [#web3](https://twitter.com/hashtag/web3) future with you all ![🥂](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f942.png) [![User Avatar](https://pbs.twimg.com/profile_images/1591975912173899778/YkUIx50f_normal.jpg)](https://twitter.com/MocaverseNFT) [Mocaverse💼🪐](https://twitter.com/MocaverseNFT) [@MocaverseNFT](https://twitter.com/MocaverseNFT) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/MocaverseNFT/status/1713782481856672150) .[@animocabrands](https://twitter.com/animocabrands) to increase [@apecoin](https://twitter.com/apecoin) delegation to Mocaverse NFT holders from 1.5M $APE to 3.5M $APE Find out more below ![👇](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f447.png) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 241](https://twitter.com/MocaverseNFT/status/1729787565488685145)[ 14:31 • 29 Nov 2023 ](https://twitter.com/MocaverseNFT/status/1729787565488685145) In addition, those who’ve been lurking through the markets over the past years are starting to allocate capital.  Check this chart out by [punk9059](https://twitter.com/punk9059), showcasing how unique wallets spending over 0.3 $ETH on NFTs have been rising constantly since September.  ![](https://storage.googleapis.com/papyrus_images/fc8064b2a42546f19070073cfe2a50b9.png) ### **Secondly, Crypto is Up, So NFTs are Up.** Remember how money flows in crypto? After crypto goes up, NFTs follow. ![](https://storage.googleapis.com/papyrus_images/541f6f77749231cf555ea971998c0797.png) That’s exactly what’s happening here. Because $ETH is up to almost $2,300, NFTs are pumping.  Check this out… the NFT market cap chart is almost identical to $ETH’s chart in the past 90 days. ![](https://storage.googleapis.com/papyrus_images/d22c37d3c2146d11025d4e4ae0997935.png) ![](https://storage.googleapis.com/papyrus_images/d8ecd463c69905270d4c62bf2fbf007f.png) ### **Conclusion** We’re still early. NFTs are only pumping because crypto ($BTC, $ETH, $SOL) is pumping. The NFT market is still very correlated to crypto. So our focus should instead be on **why crypto is pumping**. That’s because people want to frontrun the Spot Bitcoin ETF approval, which will likely happen between the 5th and 10th of January.  We’re 1 month away. 😎 Only after we get this ETF approved, and (most likely) after the Bitcoin halving occurs (137 days away) will retail and institutions enter the markets. After that happens, we can expect FOMO creeping in and prices going back to all time highs.  At that point, everyone and their grandma will seek to invest in the riskiest stuff there is (memecoins, NFTs, etc…) to chase 100x pumps.  If you're reading this now, you're early! Let’s chat about Okay Bears. ⏬ * * * ### 📈 Market Watch: **Top 5 Bullish Crypto Charts Right Now** Join me in our first-ever Market Watch podcast episode, where I explore the top 5 most bullish charts today! [![](https://storage.googleapis.com/papyrus_images/42326cf63c2fe22ae358ee299ba3e840.png)](https://youtu.be/V515BVHwqH4) [YouTube](https://youtu.be/V515BVHwqH4) | [Spotify](https://open.spotify.com/episode/5nWcON4kYcmeoEScyuZpiU?si=2a05ecc3a9254988) | [Apple Podcasts](https://podcasts.apple.com/us/podcast/top-5-bullish-crypto-charts-right-now-272/id1611073208?i=1000637644907) * * * **Okay Bears Partners with ZARA** 🧸 ------------------------------------ The iconic PFP NFT collection, Okay Bears, just announced a partnership with Zara, who’ll start selling t-shirts, hoodies and sweaters with the Okay Bears IP in 1149 stores, across 74 countries globally. ![](https://storage.googleapis.com/papyrus_images/6888338e57f5c83681c27b3b7441adb3.png) What does this mean for Okay Bears? Okay Bears is expected to earn revenue from its partnership with Zara by allowing the use of its designs commercially, receiving a licensing fee and potentially royalties from sales. Importantly, Okay Bears NFT holders **will not** accrue any value from this partnership. And that’s okay. This partnership will spread the Okay Bears branding to millions of people across the world.  Huge. Here’s why. **The NFT Value Accrual Funnel** 💸 ----------------------------------- PFPs are fully reliant on awareness.  The main utility of a PFP project is their art. And spreading the art across the globe is the best thing a PFP collection can do to spread awareness. 🗣 It’s exactly what Pudgy Penguins has been doing by getting their toys on Amazon & Walmart, and it’s what VeeFriends are doing by partnering with Mattel. [We wrote about both here.](https://paragraph.xyz/@web3academy/pudgy-toys-launched-in-walmart) It all comes down to this NFT Value Accrual Funnel which Luca Netz shared in the past.  ![](https://storage.googleapis.com/papyrus_images/fd6480ff860896ba46cea9b1885b9608.png) The idea is to expand your top of the funnel (brand awareness stage) as much as you possibly can. Pudgy Penguins are doing it via GIFs & Instagram posts, Okay Bears are doing it by partnering with Zara. Regardless, once you have a big enough top of the funnel, you can start converting your audience into NFT holders.  If you can successfully create a top of the funnel that consists of millions of die-hard fans of your brand, then you can expect your core collection (9,858 Okay Bears) to go up in price, because people want to join your community.  But to be successful, you must continuously increase your brand awareness. By partnering with Zara, Okay Bears are on the right track but they’ve got a steep hill to climb to even reach the levels of Pudgy Penguins (billions of GIF views, available in Walmart & Amazon etc…) Right now, it’s too early to tell if Okay Bears can become the next Pudgy, and in all honesty, it’s also too early to categorize Pudgies as ‘winners’. The only certainty is that this is just the beginning.  Tomorrow, we’ll release a PRO report with **my top 5 tips for this bull market.**  I’ll share all of my learnings from the past cycle with you so you don’t fuck this one up. Go PRO to receive this in your inbox, tomorrow at 9am EST. [Go PRO Today](https://paragraph.xyz/@web3academy/memberships) * * * Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha! ❤ ### **How'd you feel about our read today?** * ⭐⭐⭐⭐⭐ [Loved it!](https://bit.ly/five_star_feedback) * ⭐⭐⭐ [Decent!](https://bit.ly/three_stars_feedback) * ⭐ [Kyle, step it up!](https://bit.ly/one_star_feedback) * * * ### **Are You Fairly New to Crypto & Web3?** Let us help you wrap your head around this industry that’s constantly transforming. Take our Free 1-hour Web3 Rabbit Hole Course to learn the foundational components you need to start building and investing successfully. [Take Free Rabbit Hole Course Now](https://bit.ly/web3academy_rabbithole_nl) * * * [_Join us on Discord_](https://w3academy.io/web3-academy-membership/) | [_Follow us on Twitter_](https://twitter.com/web3academy_) [_Advertise with Web3 Academy_](https://forms.gle/sJQ74htKuPU2qJHo6) _Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content._ --- *Originally published on [Web3 Academy](https://paragraph.com/@web3academy/nfts-are-not-back-yet)*