NFT Blue Chip projects lose value in market downturn
The NFT market is experiencing a downturn as NFT blue chip projects such as Bored Apes and CryptoPunks lose value and fall. This article discusses the current state of the NFT market, the reasons behind the momentum halt and what it means for the future of NFTs.
The NFT (non-fungible tokens) market is experiencing a downturn not felt for a long time, as NFT blue chip projects lose value and some of the most popular NFT collections see a price drop.
The Bored Apes and CryptoPunks, two of the most prominent NFT projects, have both fallen below the $100K mark for the first time in months. CryptoPunks, once valued at over 70 ETH, now costs around 49.8 ETH. Similarly, the cost of entry for Yuga Labs Bored Ape NFT collection has dropped to 49 ETH, a figure not seen since 2021.
These figures are indicative of the current state of the NFT markets, which have seen a decline in the number of people and transactions carried out on NFT marketplaces across the board.
This decline is a significant change from the NFT market’s growth in February and March, which saw total trading volume reach $2 billion per month. However, this growth was almost entirely driven by volume from Blue Chip projects.
At the beginning of the year, the NFT market apparently made a huge comeback with more than $1 million in sales. A CryptoPunk NFT, CryptoPunk#5066, sold for over $1.5 million at the time. Meanwhile, BAYC sold around millions worth of NFTs over the past few months.
Now NFT Blue Chip projects are experiencing a momentum halt, with some loss in value. This is a significant shift from the market’s previous bull run, which saw prices skyrocket for popular NFT projects. While prices are still high compared to other NFT projects, the loss in value is a signal that the NFT market is experiencing a downturn.
Experts suggest that the decline in NFT trading may be due to a lack of new buyers entering the market as the hype around NFTs has died down. Nevertheless, the NFT market is still young, and it remains to be seen whether this decline is temporary or indicative of a larger trend.
Final thoughts
In conclusion, the NFT market’s recent downturn has brought some of the most prominent NFT projects down to earth, and while prices remain high, the momentum halt suggests that the market is experiencing a correction. Whether this is a short-term correction or a sign of a larger trend remains to be seen.
Edmond is a passionate writer for video games, GameFi and Web3. He has worked for top GameFi companies and video game/crypto news sites.
