The non-fungible token (NFT) industry, just like the rest of the cryptocurrency world, is in a bear market since floor prices have come down because of the larger market decline. For example, the floor price of the Bored Ape Yacht Club (BAYC) series, one of the costliest NFT collections, has dropped by even more than 55 percent of the total since the start of this month.
BAYC Floor Price Drop
According to NFT Floor Price, BAYC’s floor price had dropped to 87 ETH, or $95,700, indicating a 57 percent drop in dollar-denominated valuation since May 1, when the NFT floor price was 153 ETH.
When comparing the NFT collection to the BAYC floor price in Ether (ETH), the NFT collection has also dropped by about 50%, with the current floor price resting at 87 ETH. The price of BAYC’s associated cryptocurrency ApeCoin (APE) has dropped significantly after the introduction of Yuga Lab’s metaverse project Otherside, with ApeCoin down by more than 70%.
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When evaluating the number of sales witnessed at the start of the month to how it is now, the poor market circumstances left their mark on the overall BAYC sales, which fell by 83.94 percent. Likewise, ownership of the NFT is on the decline, with the NFT collection dropping by 2.55 percent, or 163 owners, month over month. According to NFT Price Floor data, the average 30-day price floors of the NFT sector have fallen by around 50%. The number of transactions in the space has also decreased dramatically.
The latest drops in NFT prices are a consequence of the US Federal Reserve raising interest rates, Terra’s LUNA and UST-based platforms collapsing, and traders accepting the possibility that the entire industry is in a bear market as Bitcoin’s price is at one-third of its all-time high. The floor price of all previous Yuga Labs issued collections, such as the Otherdeed NFTs and Mutant Ape Yacht Club (MAYC), has been reduced.
MAYC has also had a wild journey, plummeting from a high of 41.2 ETH to a low of 16.49 ETH, over a 56% reduction.
NFT investors are the ones who suffer the most from a bearish market. NFTs are valued in Ethereum, SOL, BNB, or another coin. So whenever the crypto market crashes, the first thing that hits the NFT owners is the devaluation due to the drop in core coins’ value. An Ethereum-based NFT like BAYC, which was worth 100 ETH and then worth $350,000, will now only be worth $100,000 as Ethereum dropped from $35,000 to $1000. Not only this, but the bearish market also impacts the NFT owners as the sales drops and the loose hands start selling off to buy the dip or exit the market pulling down the floor price.
This is the main issue not faced only by BAYC NFT holders but the whole community as Bitcoin hits the $20,000 mark. People like to see the value of their investment increase in crypto as well as NFT at the same time, but when the crypto and NFT fall, it’s a double loss. So why can’t NFTs be stablecoin-based?
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.