Non-fungible token (NFT) investors have entered what appears to be a bear market as a result of the recent chaos which is ultimately impacting the morale of the cryptocurrency community.
Data from NFT Price Floor reveals that the average 30-day price floors of NFTs have declined by approximately 50% from a little over 40 towards the end of April to currently stand at 20.18. Transaction volumes have also declined significantly in the space.
The recent declines in NFT prices are as a result of factors including the United States Federal Reserve’s raised interest rates, Terra’s LUNA and UST-based platforms collapsed and traders coming to terms with the reality that the entire sector could be in a bear market.
What you should know
Week after week, most blue-chip tier NFTs maintained their position in the top 10 in total sales volume despite some floor prices dropping nearly 25% in the last seven days.
Notably, prestigious NFTs like the Yuga Labs’ Otherdeed NFTs, Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) have all seen a decrease in their floor price.
BAYC, for example, has since recovered from a dip in floor price after the Otherdeed launch and has seen a minimal 3% decrease in the last seven days. MAYC has seen nearly a 13% decrease in floor price in the last seven days.
MAYC has been on quite a ride, falling drastically from its peak at 41.2 Ether (ETH) to $120,386 at the time. Currently, MAYC is valued at 19.6 Ether, an approximate 53% discount since MAYC’s pump was largely due to their eligibility to claim Yuga Labs’ Otherside’s Otherdeed NFT.
Despite all of the uproar and controversy surrounding the Otherdeed NFT drop, the project remains at the top of the charts in total volume even after a 75% drop over the last seven days.
The functionality of these digital lands is still unclear and Otherdeed has seen its floor price in a consistent downward trend. In the last seven days, the floor price decreased by 1.2%, and since minting, the price has dropped 55% from its all-time high at 7.4 Ether.
RTFKT studio’s CloneX floor price has dropped nearly 13% in the last seven days with volume decreasing slightly over 12%. However, these numbers do not phase the community.
Despite the recent dip, the RTFKT ecosystem is buzzing after celebrating the opening of Japanese contemporary artist Takashi Murakami’s An Arrow through History in New York City.
The exhibit is currently in the Gagosian Gallery, featuring CloneX-inspired pieces along with pieces from Murakami’s first NFT collection, Murakami Flowers.
Even with the NFT market cooling, the pricing seems like a blowout sale to some investors looking to capitalize on news. As it would turn out, proclaimed blue-chip Azuki NFT took the biggest plunge in light of one of its founders, Zagabond, openly admitting to their tumultuous past plagued with rugging the CryptoPhunks and Tendies community.
NFTs are still considered the Wild West, but some investors are learning that everyone’s barometer for morals and ethics is slightly different. After the news sank in, Azuki’s floor price dropped precipitously but certain NFT influencers were quick to jump in and sweep the floors for potential future opportunities.
Although things aren’t as bad as they were in 2018, the NFT market isn’t as seasoned. Despite this, investors are already strapping up for potential future profits and ways to survive the current market downturn.
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