Azuki, a prominent entity in the Non-Fungible Token (NFT) market, has witnessed a significant decrease in the prices of its NFTs. Data from Nansen, a blockchain data and intelligence provider, reveals that Azuki NFT prices have dropped by 65% since the launch of the Elementals collection in June. On June 26, a day before the Elementals drop, Azuki prices were around 15 ETH ($28,250). However, in the following month, the floor price dropped to 5 ETH ($9,724) as of July 27. Alongside the price drop, Azuki’s trading volume also experienced a 78% decrease this month.
The Elementals drop controversy
The Elementals collection, launched by Azuki on June 27, catalyzed the price drop. The collection comprised 10,000 anime-inspired avatars, which were airdropped to existing Azuki brand holders.
According to Yau Teng Yan, the head of NFT research at Delphi Digital, there are concerns surrounding the launch of the Azuki Elementals. Yan questions the potential for a cash grab and the resemblance of the Elementals to the OG Azukis. Additionally, Yan raises doubts about the justification for the high prices of OG NFTs and the actual benefits of owning one. These concerns are worth considering as the NFT market continues to evolve and expand.
An additional 10,000 were intended for sale, but the collection sold out before the public could purchase an NFT. Azuki acknowledged the missteps in the launch, stating, “we missed the mark.”
Sales despite controversy
Despite the controversy surrounding the Elementals drop, Azuki managed to net $51 million in sales. This marked the highest trading volume for the collection since May 2022. However, the success of the sales did not translate into sustained interest in the Azuki NFTs. The significant drop in prices and trading volume in the weeks following the Elementals drop indicates a cooling of interest in the Azuki brand.
The Azuki collection is highly regarded in the NFT market and is commonly used as collateral in the growing NFT lending industry. However, the recent incident has caused many collectors to sell their Azuki, leading to a ripple effect throughout the lending market.
Nonetheless, the crypto market, meanwhile, has remained relatively unaffected by the NFT drama. At the time of press, Bitcoin is trading at around $29,205, declining by 0.31% in the last 24 hours.
