NFT Wars: CryptoPunks rise, BAYCs collapse

Isn’t that the old monkey we teach to make a face? – Long vilified in favor of more trendy new NFT collections, these good old CryptoPunks seem to finally get back on their feet. In fact, the minimum price (or minimum price) of our favorite pixels has just surpassed that of the famous apes of the Bored Ape Yacht Club (BAYC). An event that hasn’t happened since January 2022. We tell you everything in this article.

BAYC, old-fashioned NFT?

Remember, not so long ago the famous BAYCs were in the spotlight. Celebrities like it Justin Bieber Where is it Neymar he snatched them at exorbitant prices to “be part of the club”. It must be said that the collection launched by Yuga Labs he had something to want. Private parties, gifts worth thousands of euros, airdrops in ApeCointhe cryptocurrency of the collection or the construction of a dedicated metaverse. In short, the Yugalabs teams were on all fronts, in all battles and were browsing on the news of the moment to promote their collection.

Yuga Labs are their armed monkeys to surf all trends

Only then, the bear market doing its job and permanently establishing itself on the market, this craze now seems to have subsided. And the starting price of the collection it has not escaped him. Now he’s flirting with 67ETa trifle of $ 107,000 current price of Ethereum. Which is still a sum. However, at its peak at the end of April 2022, no less than 136ET to acquire the cheapest of them, at a time when theEthereum flirted with the $ 3000 unit. A sum of $ 408,000 therefore, far from being within the reach of all budgets. While at the same time, only 62 small ETHs were enough to afford a CryptoPunk.

On the other hand, today, BAYC’s minimum price drops like a pancake while CryptoPunks’ price goes up. Slowly but surely, these pixel-filled rebellious figures reach the 66.5 ET, after falling momentarily by around 50 ETH. Would investors be so nostalgic as to go back to their first love? Or is there a simpler reason behind this mystery?

NFT CryptoPunks' price curve joins BAYC's, which hasn't happened since January 2022.
BAYC and CryptoPunks NFT minimum price comparison – source: Dune Analytics

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Are cryptopunks back in the spotlight?

Although some news could raise the price of their CryptoPunks competitors, a more technical reason could be hiding behind this simian drop to the point of scaring investors. And the culprit could be the BendDAO platform. This platform offers NFT holders to deposit them as collateral against the ETH loan. A good deal at first glance. Except that in these times of decline, many borrowers are dangerously approaching the liquidation limit set at 70% of the value of the NFT. Once reached, BendDAO recovers the NFT placed as collateral and sells it to the highest bidder. As a result, the minimum price falls, which leads to the liquidation of the other holders of these collections. BendDAO collects the new liquidated NFTs to sell them again, further lowering the minimum price and fueling the hellish cycle.

Unlike BAYCs, Cryptopunks are not listed on BrendDAO and therefore are not interested.
CryptoPunks are on the rise

2.8% of BAYC and 1.6% of MAYC (Mutant Ape Yach Club) are currently deposited as collateral on the platform. Although a vote is underway to propose raising the liquidation limit to 95% of the value of these NFTs instead of 70%, the outlook is not very reassuring. However, there are no CryptoPunk on the platform, which reassures their owners.

If the CryptoPunks have long come back ahead of the BAYCs or if the latter remain in pole position, for Yuga Labs, it does not matter. The latter, in fact, bought the CryptoPunks and Meebits collectionspreviously held by the company Larvae Laboratories. The Yuga Labs company appears to specialize in acquiring luxurious NFT collections. In a world where NFTs are multiplying every day with new use cases, from games to music, from art to social networks, there is no doubt that this strategy could prove successful in the future.

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