Bored Ape Yacht Club seems to have a bit problem with NFT and the floor price. It has fallen 50% in USD terms this month.
Nonfungible tokens or NFT trading hit $17 billion in 2021. It’s a 21 000% increase in comparison to 2020.
In general, more than 2.5 million crypto holders traded NFT last year. And NFT investors got a $5.4 billion profit from token sales.
Experts predicted the NFT market to rose dramatically in the coming years. But after the current crypto market collapse, these forecasts would likely fail.
According to the analytics company Chainalysis, the number of accounts actively buying and selling NFTs already has declined by more than half this year.
And the most popular NFT platforms are lowering their prices right now.
What happened to BAYC?
Bored Ape Yacht Club NFT platform floor price is down by more than 50% in dollar terms since the beginning of May.
On Wednesday 18 May, the cheapest BAYC NFT price fell below $200 000. And sale volumes have also decreased throughout the month.
Two weeks ago the cheapest BAYC NFT was on sale for $420 000, but now it seems to be more and more illiquid.
“The drop in price comes amid a broader market downturn as cryptocurrency prices remained low following the collapse of TerraUSD. During its sudden demise, the Luna Foundation Guard (LFG) was forced to sell its massive bitcoin reserves to protect UST’s peg,” The Block writes.
According to The Block’s Data Dashboard, BAYC NFT sales were down by over 30% week-on-week, from May 2 to May 9.
BAYC platform had great plans for its development as it announced its own metaverse launch and started trading its own ApeCoin token earlier in April.
What is with ApeCoin?
“Introducing ApeCoin ($APE), a token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3”, – BAYC spokesperson wrote on Twitter during the launch.
The token started market listing with an initial price of around $9, and then it have risen to $26 on April 29.
The mid-May market collapse dropped ApeCoin’s price to $5. At the time of writing, you can buy it for $7,82.
Some experts predict NFT market crash could also make APE token performance much worse. As prominent blockchain enthusiasts crying out about the bad impact of ‘useless blockchain appliances’.
Recently Ethereum co-founder wrote about the contradiction between his ‘dislike of many modern financial blockchain “applications” ($3M monkeys etc)’, and his ‘grudging appreciation for the fact that that stuff is a big part of what keeps the crypto economy running and pays for all my favorite cool DAO/governance experiments’.
By $3m monkeys Buterin meant expensive BAYC NFTs that are attractive to bunches of celebrities, including Jimmy Fallon and Snoop Dogg.
So now it seems like even rich celebs don’t want to deal with risky NFT assets. At least, while the market won’t go up again.