The collapse of the cryptocurrency market is causing a flurry of opportunistic NFT buying. In contrast, the largest collections of “non-fungible tokens” are regaining strength as their price has dropped. In one week, CryptoPunks’ volumes increased 357%, according to Dappradar, as their minimum price dropped 16% to $ 51,500.00.
The Meebits, a collection of 20,000 most popular 3D characters, has seen their purchase volumes increase by 197% in the past seven days, the Bored Ape Yacht Club (BAYC) has taken 21% and their Mutant Ape Yacht cousins Club (MAYC)), gained 12%. Clone X, by artist Takashi Murakami, gained 54%.
Bored Monkey at $ 100,000
The price of a BAYC dropped 40% in one month, to just over $ 100,000. MAYC’s sold 37%, at $ 20,000 on average. Meebits are worth 22% less than a month ago, at $ 5,500. This fall was amplified by the collapse of Ether. This crypto, used primarily to buy NFTs, lost 42% in a month against the dollar. For many buyers, that’s the promise of a recovery session.
While traders defected in June, we have seen them return for a week. It is five times more likely that they have bought CryptoPunks in these seven days, twice as much for BAYC and MAYC and nearly three times more for the Meebits collection.
After a low of ether this weekend at $ 1,000 – before recovering on Monday – there has been a new breath of fresh air on the NFT market in the past 24 hours. The Bored Apes took 372% and the Otherdeed – metaverse storylines from the same publisher – gained 361%.
King Yuga Labs
“Collecting profile pictures like BAYC or CryptoPunks have become safe havens,” said Jean de Nicolaÿ, president of the newly created Syndicat des NFT. We see new collectors converting their euros or dollars into ether to finally buy one of these tokens whose price has dropped. These collections have in common that they belong to the Yuga Labs studio, which recently raised $ 400 million to create its metaverse (Otherside).
However, not all collections are benefiting from this renaissance. Which invite the NFT Syndicate to evoke a “beginning of rationalization” of the market. In the Top 10 of the week, Mathcastles’ Terraforms was down 20%, Catgirl Academia was down 52%, Globintown was down 63%, and Invisible Society XYZ was down 60%. Volumes of the largest token platform, OpenSea, halved over the course of the week, reflecting a now mixed market.
What about art NFTs?
Parallel to these collectible NFTs, often belonging to series of 10,000 images – and which represent about two thirds of the market in volume -, the rarer art tokens, but whose value is established on a case-by-case basis, are less threatened. For Jean de Nicolaÿ, these digital pieces have the advantage of having art as a basis.
“We observe that the artists continue to produce while the profitability, at the moment, is lower for them”, underlines the one who is also founder and director of Pierre Bergé NFT Labs (person in charge of the house of Pierre Bergé et Associés). Digital works continue to sell, he says. But “it takes 24 hours to find a buyer instead of 10 minutes”.
In the coming months, it is not excluded that the NFT market will benefit from unexpected support from China. Although cryptocurrencies were banned in late 2021, non-fungible tokens are growing in favor of a gray area. According to Cointelegraph, since February the number of exchanges has gone from 100 to 500 in the country, led by Tencent and Alibaba. What will help the market move beyond just a rebound?