NFTs Take a Hit: BAYC and CryptoPunks Floor-Prices Drop
• Ethereum-based Blue-Chip NFT projects have seen a significant drop in floor prices from their all-time highs.
• BAYC and CryptoPunks recorded the highest absolute losses, with a decrease of 120.2 ETH and $383,244 respectively.
• Trading volumes in the NFT marketplaces have declined by 35%, which is likely to be one of the causes for the price drops.
Blue Chip NFTs Suffer Price Drops
The floor prices of Ethereum [ETH] -based Blue-Chip NFT projects have declined by an average of 82.8% (or 34.6 ETH) from their all-time highs (ATHs), CoinGecko found in a new report . Blue chip NFTs are considered to be high-quality and have a high potential for future growth, characterized by their high floor prices, strong community, and potential for future utility.
BAYC & CryptoPunks Record Highest Absolute Losses
Out of the top 11 Blue-Chip NFT projects examined, CoinGecko found that Yuga Labs’ Bored Ape Yacht Club [BAYC] and CryptoPunks recorded the highest absolute losses. Compared to their ATH floor prices, BAYC lost the most native currency value (-120.2 ETH), and CryptoPunks lost the most USD value (-$383,244).
Decrease in Trading Volume
In Q2, trading volume across all NFT marketplaces declined by 35%. This could be attributed to waning interest in profile picture Non Fungible Tokens (NFTs). As interest in PFPs waned, BAYC’s trading volume fell from its daily sales volume high of $11.47 million on 22 February to $618,995 worth sales volume as of 25 July; a decline of 94% in five months.
CryptoPunk’s Floor Price
CryptoPunk’s floor price was pegged at 47.69 ETH at press time according to data from NFT Price Floor; its value had taken a beating after exchanging hands for as high as 11000 ETH during 2021’s bull market run up until April 2022 when it reached its ATH 128 ETH before commencing its downward trend thereafter. On a year-to-date basis CryptoPunk’s floor price dropped 57%.
Overall it appears that Blue Chips are not immune to volatility; traders should exercise caution when investing in these projects as they may experience significant losses depending on market conditions at any given time despite their promising outlook due to their quality and long term potential utility prospects attached them .