Celebrities have been picking up bored ape drawings alongside seven-figure transactions at the Bored Ape Yacht Club, a prominent indicator of soaring valuations in the NFT market. However, the Ethereum profile photo collection now demonstrates how low NFT demand has dropped in the context of a broader crypto market crisis.
Drastic fall in the base price of BAYC NFTs
According to NFT Price Floor (1), the minimum price for a Bored Ape Yacht Club NFT, the lowest-priced item listed on a secondary marketplace, is currently $96,469, or 80 ETH. As per the website’s data, the price dropped to $91,741 overnight.
In less than two months, the price of the entry-level Bored Ape NFT has plummeted approximately 78 percent in US dollars. On April 29, just before Bored Ape creator, Yuga Labs started their NFT virtual land sale for ‘Otherside,’ a game, the floor price hit a new high of over $429,000 (152 ETH). Holders of Bored Apes were eligible for free plots as NFTs.
Since then, the amount of ETH collected has decreased by 47%. That’s a big figure in and of itself, but it also shows how the price of Ethereum has affected the value of NFT collections. Since August 2021, when the collection soared alongside the wider NFT market, the Bored Ape Yacht Club hasn’t seen a sub-$ 100,000-floor price.
All leading NFTs have lost value.
Over the last month, every big NFT collection has lost significant value. Bored Apes have lost 54 percent of their value in the previous 30 days when assessed in US Dollars. CryptoPunks have lost 48 percent, and the newer Moonbirds have lost 62 percent.
An NFT is a document that acts as proof of ownership for digital products such as profile images, artwork, sports and entertainment memorabilia, and video game items.
According to DappRadar statistics, the NFT market showed rising demand in 2021, reaching $25 billion in trade volume. This demand has persisted into 2022, with approximately $16 billion in organic trading in the first four months. OpenSea, the main NFT platform, had its best single day of trade on May 1, with $476 million.
However, the declining crypto market seems to have greatly influenced the NFT area, with daily trade volume plummeting in early May as crypto values plummeted. NFT trade increased on Monday as purchasers sought ‘bargains’ amid depressed prices, while prominent coins like Bitcoin and Ethereum hit lows not seen since 2020.
The Apes have historically been among the most famous.
The Bored Ape Yacht Club is among the most well-known and successful NFT collections. As per CryptoSlam, the first set of 10,000 profile photographs with randomly generated attributes has generated more than $2.2 billion in trading volume, with additional collections and related ventures adding to that total.
Celebrities such as Snoop Dogg, Jimmy Fallon, and Madonna have endorsed the concept, which prompted Yuga Labs to raise $450 million in March at a $4 billion value.
However, even the Apes are not immune to market problems, as evidenced by the recent sharp decline in price points and decreased trading volume. According to CryptoSlam, the initial Bored Ape NFT collection generated almost $96 million in trade volume in the last 30 days, down nearly 72% from the prior 30-day period.