Table of Contents
- BAYC Drops Below 30 ETH
- 50% Decrease Since April
- Collectors Questioning BAYC Investment
- Many Challenges For NFT Market
The floor price of the Bored Ape Yacht Club NFT collection has dropped to the lowest in the last 20 months.
BAYC Drops Below 30 ETH
The forecast does not look good for NFTs, as the most popular collection ever, the Bored Ape Yacht Club (BAYC), has sunk to a 20-month low. According to a report from the data analytics platform, CoinGecko, the floor price of the NFT collection from the iconic Yuga Labs drastically fell to 27.4 ETH, which is around $53,000 on Sunday evening.
NFT marketplace OpenSea claimed that the collection’s trading volume has dropped by a significant 38% in just 24 hours. It did recover from the bottom, however, slightly, settling around 29.5 ETH at the time of writing.
50% Decrease Since April
The floor price is the lowest value a seller is willing to accept for an NFT and is a crucial indicator of the NFT’s demand and popularity. For the BAYC collection, the floor price has experienced a 50% decrease since April of this year.
At the beginning of the month, it was being traded at 64 ETH, equivalent to approximately $126,000. However, across the month, pseudonymous collector Franklin sold 27 NFTs from his BAYC collection, which must have compounded the lack of interest further, dropping the floor price to a five-month low of 55.6 ETH, or about $110,000.
Collectors Questioning BAYC Investment
This is tough news for the collection, which has almost always seen high demand. In fact, the last time its floor price was below 30 ETH was back in October 2021. However, soon after, the NFT boom hit, and BAYC’s floor price skyrocketed to new all-time highs.
The Bored Ape Yacht Club, a popular and highly sought-after NFT collection known for its unique pixelated ape characters, had garnered significant attention and fetched substantial prices in the past, its highest being 153.7 ETH (approximately $430,000) in April 2022. However, the recent drop in floor prices has caught many collectors off guard, leaving them questioning the future of the collection and the broader NFT market.
Many Challenges For NFT Market
Other than the overall bearish market, experts also believe that the initial frenzy and hype surrounding NFTs have subsided, leading to a decline in demand and, subsequently, lower prices. According to OpenSea, this could be a result of the long crypto winter that pulled down the price of Ethereum. As a result, this has affected the price of the NFT collections like BAYC, which are powered by Ethereum. Other collections affected by the crypto winter are MoonBirds, Azuki, Doodles, and others.
Moreover, the BAYC collection itself has seen a surge in supply that has put additional pressure on the prices, leading to the significant drop witnessed recently.
Additionally, the increased regulatory scrutiny toward NFTs and the broader cryptocurrency industry has introduced an element of uncertainty, causing some investors to pull back and leading to a decline in prices.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.