Top-tier NFT projects are witnessing a drop in value as trading metrics across various marketplaces have reached their lowest point in nearly two years.
Esteemed NFT collections, such as CryptoPunks and Bored Ape Yacht Club (BAYC), have seen their floor prices fall below $100,000 worth of ETH for the first time in months. The broader non-fungible token market is experiencing a downturn, with trading statistics at levels not seen for years.
Although the NFTs have shown some recovery, the current cost of a CryptoPunk is 49.8 ETH ($93,692 at the time of writing). This marks a decline of over 30% from just a month ago, when the lowest-priced CryptoPunk was valued at slightly over $128,000 in ETH.
Bored Apes NFTs face similar struggles
Bored Apes, the popular project by giant Yuga Labs, has also been affected. The minimum price to join the collection is currently 49 ETH, or approximately $92,200. This is the lowest it has been since November 2021.
These dwindling figures indicate a larger issue: a decrease in trading activity across the entire NFT market. Since mid-April, daily trades across all trading platforms have plunged by an astounding 71%, as reported by Dune Analytics.
A gradual decline across leading marketplaces
The decline in trading has been gradual and consistent, with a number of digital collectable trades just under 20,000 on Thursday – a figure that has not been seen since late 2021.
The reasons for the recent downturn are uncertain. Although Ethereum’s post-Shanghai price increase slowed this week, the cryptocurrency remains relatively strong, with a value of around $1,845 at the time of writing, according to CoinGecko.
The rise of blur and its impact
One notable factor contributing to the non-fungible token market’s perceived resilience is the emergence of Blur, an NFT trading platform that quickly surpassed OpenSea as the leading marketplace in late February. However, Blur’s success was driven by a rewards system that enticed traders to abandon other platforms and engage in rapid, potentially meaningless trades.
Although the digital collectibles market surged in February and March, reaching roughly $2 billion in total trading each month, this growth was primarily fueled by Blur’s volume, which some experts have deemed as manipulated “wash trading.” Over the last week, Blur has accounted for over 60% of all NFT trading volume. However, the platform’s tactic of attracting customers from other platforms and incentivizing them to make superficial trades may have ultimately dampened genuine market activity.
Some experts attribute the recent decline in NFT trading to the increase in gas fees, possibly driven by the surge of meme coins like PEPE. Analytics firm SeaLaunch suggested various macro factors in a recent Twitter thread, including high gas fees and liquidity challenges around the U.S. tax deadline.
Others view these dismal figures as evidence that the long-anticipated “bottom” of the crypto and NFT bear market has finally arrived. However, as the past year has demonstrated, there may still be further falls.
