Bored Ape Yacht Club NFT price falls After FTX sink Crypto market

In short

  • Prices for Bosen Ape Yacht Club NFTs are falling amid the recent crypto market downturn.
  • The cheapest bored ape now costs 82% less (in USD) than at the peak of the collection in April.

Crypto price is down across the board This week amid news about FTX’s liquidity crunch and alleged mismanagement from the customer’s funds, the market turmoil may be extended to NFT the world, too. Popular Ethereum the project Bored Ape Yacht Club is seeing a sinking price as ETH falls and owners potentially panic-sell their valuable NFTs.

According to data from NFT Price Floor, the cheapest available bored Ape yacht Club NFT on the market (ie “floor price”) listed for 57.5 ETH in this article, or about $76,400. Measured in ETH, it is down 7% in the past 24 hours. But measured in USD, given the decline in the value of ETH (which fell 13% this week), it has fallen almost 24% over the past day.

Based on the current price, in USD, the price of the floor of a bored monkey has plummeted since then the peak is almost $429,000 (152 ETH) on April 29 earlier this year, ahead of the launch of the virtual land NFT deed for Yuga Labs’ creator Otherside game metaverse. That’s an 82% drop.

After recently riding neck-and-neck in terms of price floor with CryptoPunksOther valuable Ethereum NFT collections (also now owned by Yuga Labs), Apes has lost speed.

As of this writing, the floor price for CryptoPunk has risen 6% (in ETH) over the past 24 hours to 66.75 ETH, or about $88,700. Amidst the changing market struggle, some investors may see CryptoPunks as a more durable asset that will retain value better than other NFTs, given its status as an influential, enduring project from 2017.

An NFT is a blockchain token that can be used to represent ownership in an item, including something like profile picture (PFPs), works of art, and collectibles. The Bored Ape Yacht Club is a popular PFP collection with 10,000 unique images, and has produced almost $2.5 billion secondary market trading value since its launch in April 2021.

There are several potential factors that could push Bosen Ape’s price down this week. One is the desperation of the general crypto market amid the collapse of FTX, which may lead some investors to dump their “blue chip” NFT assets amid the downturn. Interestingly, there is on-chain evidence to suggest such actions.

Data aggregated by Flipside Crypto and shared by The proof Director of Research Punk9059 Wednesday shows increased significantly in trades on the leading market OpenSea using wrapped Ethereum (WETH) instead of standard ETH. WETH trading shares surged this week, popping above the 50% mark as of late Wednesday afternoon.

Is it significant? Placing bids on NFT on OpenSea requires WETH, so if the number increases, it means more NFT owners who receive bids placed in their assets. The offer is usually lower than the market value for any NFT, so the figure shows that sellers take lowball offers to quickly liquidate their NFTs amid market turmoil.

Another element related to the decline of the crypto market is BendDAO, a lending protocol that allows users to take out crypto loans by using valuable NFTs as collateral. Now, BendDAO is auctioning off 14 bored Ape NFTs of disbursed loans, with current offers all below the floor price in the main market. It may indicate soft demand for assets.

In August, BendDAO itself facing a significant liquidity crisis When it runs out of ETH and doesn’t get high enough bids for the auction, the NFT is confiscated from the disbursed loan. Ultimately, protocol members voted to lower the liquidation threshold to make it easier for BendDAO to auction NFTs for underwater loans.

Stay on top of crypto news, get daily updates in your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *