Why BAYC Has Been One of the NFT Pools Most Affected by the FTX Crash by DailyCoin

• Prices of Bored Ape Yacht Club NFTs are falling due to the collapse of the FTX exchange.
• Sellers take low value offers to quickly liquidate their NFTs

The sudden liquidity crisis facing FTX, as well as its alleged mismanagement of client funds, has resulted in a decline in the value of broad swathes of the crypto market – and the NFT sector has been no different.

In the midst of these struggles, the value of NFTs in the ‘Bored Ape Yacht Club’ (BAYC) collection has steadily declined in value as the price of Ether (ETH) falls, causing holders to panic sell their NFTs.

CryptoPunks Collection Flips BAYC

Based on NFT price floor data, the cheapest available BAYC NFT on the market is currently listed for 54.54 ETH at the time of writing.

Source: NFT Price floor

Calculations from CryptoSlam, an NFT aggregate data aggregator for a number of blockchains including , WAX and FLOW, also indicate a decline in sales.

In October 2022, the NFT industry recorded a trading volume of $31,275,729.82, while so far in November it stands at $23,330,998.78.

Source: CryptoSlam

Why BAYC Crashes in Value

There are many factors as to why BAYC prices are being pushed down, with the general crypto market crash that has followed in the wake of FTX’s collapse foremost among them.

Data from Flipside Crypto, as shared by Proof Director of Research “Punk9059”, indicates that there has been a noticeable increase in trading activity on leading NFT marketplace OpenSea. Furthermore, traders have been using Wrapped Ethereum (WETH) instead of standard Ether (ETH), as WETH trades were used in more than 50% of executed transactions.

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WETH trades as a percentage of total OpenSea volume is above 50% for the first time today. The chart below is pretty wild. Everyone accepts the bids that are out there. This is up from 40% when I tweeted this chart earlier. pic.twitter.com/5Zo66UPLfF

— NFTstatistics.eth (@punk9059) November 9, 2022

Placing a bid for an NFT on OpenSea requires WETH, so when this number increases, it gives us the perspective that more NFT owners are accepting bids for their assets.

BendDAO also had a role in this protocol, allowing users to take out crypto loans using valuable NFTs as collateral.

BandDAO auctioned 19 BAYC NFTs from liquidated loans, five of which remain as of November 14, 2022.

Source: BendDAO

Some crypto enthusiasts have even speculated that the decline BAYC is experiencing is due to the illiquid ApeCoin (APE), an important cryptocurrency in the BAYC ecosystem. The token suffered greatly due to a significant amount of APE tokens held on the FTX exchange.

FACTS regarding @yugalab’s current situation – Majority of @apecoin was held in @FTX_Official (freezing almost all their liquidity. – @SBF_FTX has a LOT of @BoredApeYC grals that will be liquidated. – $APE has almost no liquidity due to FTX exposure.100 % of insolvency!pic.twitter.com/gK4BGFvarW

— 0xTre.eth Weird ENS Plug (@GlobalTourism_) November 11, 2022

On the other side

• The NFT space is now more active than before, as a large volume of NFTs move from one cryptocurrency wallet to another, indicating that there is still genuine interest in the nascent digital art space.
• ‘CryptoPunks’ still trails BAYC in all-time NFT sales, according to data from CryptoSlam.

Why you should care

Bored Ape Yacht Club (BAYC) NFTs initially saw an increase in popularity and usage among celebrities, resulting in the collection rising in price, especially compared to CryptoPunks. However, in the wake of the FTX debacle, the premier collection has become more accessible.

While the sector’s declining value has hit many investors hard, it has allowed NFTs to regain the spotlight and is likely to contribute to an increase in the popularity and overall sales of NFTs.

Find out more about OpenSea’s NFT royalty enforcement policy:

OpenSea launches tools to enforce NFT royalties for new collections

Visa (NYSE: ) and Crypto.com have partnered on a new sports NFT series. Find our more:

Visa and Crypto.com launch NFTs for soccer fans ahead of FIFA World Cup 2022

See the original on DailyCoin