The non-fungible token (NFT) market has experienced a massive downturn, with prices of popular NFT collections falling. A renowned collection, the Bored Ape Yacht Club (BAYC), has recorded a steep decline, reaching its lowest point in two years.
The recent crash of NFT prices proves that the winter season in the digital asset space is not over, despite the rally currently being seen in the Crypto market.
Interestingly, the floor price for Bored Ape NFTs has dropped to around $52,000 worth of Ethereum, representing an 88% drop from peak levels in April 2022.
In that context, the Mutant Ape Yacht Club (MAYC), a reputable successor to the BAYC, has seen its bottom price drop by around 32% over the past week. It fell to about 4.7 ETH, which translates to about $9,100, which is the lowest value ever tracked by NFT Price Floor since the launch of the project.
Beanz and Azuki NFT Collections
The downturn of the non-fungible token market has affected many other collections as well. Azuki’s eponymous anime NFT collection has seen a massive 59% price drop in the past week, with its floor price hovering around 6 ETH (approximately $11,875). Additionally, the floor price for Beanz, another collection created by Azuki creator Chiru Labs, has dropped 77% to around 0.4 ETH (which translates to almost $785).
CryptoPunks stability
Unlike the other NFT collections, CryptoPunks has shown some relative stability during the downturn of the market. Despite a 14% rock bottom price drop in the past week, CryptoPunks remains culturally significant within the Web3 space. It is considered valuable with no need for additional ‘utility’ or functions for the holders.
What is causing the downturn in the NFT market?
Industry analysts and experts believe that the recent wave of “panic selling” within the non-fungible token market is caused by several factors. Traders on Blur, a platform designed to reward trading activity, have amplified the market’s downturn to some extent. This increased trading activity has increased the downward pressure on NFT prices, leading to more declines in the market.
Conclusion
The nonfugible token market is now facing a massive downturn with prominent NFT collections such as Mutant Ape Yacht Club, Bored Ape Yacht Club, Beanz, and Azuki experiencing huge price drops. Nevertheless, CryptoPunks now stands out as a collection that has managed to maintain its stability during these tumultuous times.
The effect of panic selling and trading rewards offered on platforms such as Blur have contributed to increased downward pressure on NFT prices. It remains to be seen how the market will be able to develop and whether it will succeed in recovering from this period of massive downturn. As the NFT space matures, market participants and operators will closely monitor price movements and adjust their strategies.