Are blue-chip NFTs dying out? – Cryptopolite
Top-tier NFT projects are witnessing a drop in value as trade metrics across various marketplaces have hit their lowest point in almost two years.
Well-known NFT pools, such as CryptoPunks and Bored Ape Yacht Club (BAYC), have seen their floor prices drop below $100,000 worth of ETH for the first time in months. The broader non-fungible token market is experiencing a slowdown, with trading statistics at levels not seen for years.
Although the NFTs have shown some improvement, the current cost of one CryptoPunk is 49.8 ETH ($93,692 at the time of writing). This marks a drop of over 30% from just a month ago, when the lowest priced CryptoPunk was valued at just over $128,000 in ETH.
Bored Apes NFTs face similar battles
Bored Apes, the popular project of giant Yuga Labs, has also been affected. The minimum price to join the collection is currently 49 ETH, or approximately $92,200. This is the lowest it has been since November 2021.
These declining numbers indicate a larger problem: a decline in trading activity across the entire NFT market. Since mid-April, daily trades across all trading platforms have fallen by an astonishing 71%, as reported by Dune Analytics.
A gradual decline across leading marketplaces
The decline in trade has been gradual and consistent, with a number of digital aggregate trades just under 20,000 on Thursday – a figure not seen since late 2021.
The reasons for the latest decline are uncertain. Although Ethereum’s post-Shanghai price rally slowed this week, the cryptocurrency remains relatively strong, with a value of around $1,845 at the time of writing, according to CoinGecko.
The rise of blur and its impact
A notable factor contributing to the non-fungible token market’s perceived resilience is the rise of Blur, an NFT trading platform that quickly surpassed OpenSea as the leading marketplace in late February. However, Blur’s success was driven by a reward system that enticed traders to abandon other platforms and engage in quick, potentially pointless trades.
Although the digital collectibles market surged in February and March, reaching roughly $2 billion in total trade each month, this growth was primarily driven by Blur’s volume, which some experts have deemed manipulated “wash trading.” Over the past week, Blur has accounted for over 60% of all NFT trading volume. However, the platform’s tactics to attract customers from other platforms and encourage them to make superficial trades may have dampened real market activity.
Some experts attribute the recent decline in NFT trading to the increase in gas taxes, possibly fueled by the rise of meme coins such as PEPE. Research firm SeaLaunch suggested various macro factors in a recent Twitter thread, including high gas taxes and liquidity challenges around the US tax deadline.
Others see these grim numbers as evidence that the long-awaited “bottom” of the crypto and NFT bear market has finally arrived. But as the past year has shown, there could still be further falls.
