What for Investors Amid Ailing CryptoPunks?

The BAYC (Bored Ape Yacht Club) NFT collection saw its Ethereum floor price plummeting to 65 ETH last week. NFT Floor Price data shows the decline was the lowest since 2022 started.

Moreover, CoinGecko revealed that BAYC’s floor price maintained slumps since the 153.7 ETH all-time high, printed nearly three months ago. The fall came as the overall crypto market endured continued declines.

The declining BAYC floor price raised concerns over BendDAO liquidations, sending more jitters into the crypto space last week. BendDAO is a non-fungible token (NFT) liquidity pool that enables individuals to borrow ETH with NFTs as collateral.

Meanwhile, clients can borrow 40% of the security NFT floor price. Cases where the floor price plummets until the loan’s Health Factor dips beneath one force an auction of the collateralized NFT within two days.

The highest bidder will get the NFT whenever borrowers fail to pay the loan. While publishing this blog, two Bored Ape Yacht Club NFTS are up for auction, following BAYC’s continued floor price dip. Their health factors stand at 0.97 and 0.93.

CryptoPunks Respond

August 21 trading sessions saw CryptoPunks NFTs temporarily displacing Bored Ape Yacht Club following a floor price increase (NFT Floor Price data). While publishing this post, CryptoPunk had its floor price at 66.45ETH, following BAYC’s at 68.48 ETH.

NFTGo data shows this blue-chip NFT endured impacts of the extended NFT market slump. The project’s sales volume declined by 47.72% within 30 days. Moreover, sales volume slumped by 30% within the previous week alone.

While publishing this blog, CryptoPunks had its sales volume at $395,629.89, following a 48% slump over the past 24 hours. Also, the current $2.27 billion market cap reflects a nearly 10% drop over the past 30 days.

The past month saw only 182 buy/sell NFT transactions completed on CryptoPunks. That indicated a 56.77% drop in CryptoPunk’s sales figure within the previous month. Also, the transaction count in receiving or sending NFTs on the collection noted a 24% drop.

Everybody Suffers

Furthermore, Blue Chip Index (for tracking Blue Chip NFTs performance) has seen a sharp slump over the last 30 days. While publishing this post, the index hovered at 9,585 ETH, following an 18% slump in the timeframe under review.

Meanwhile, the general crypto market saw a 9% trading volume slump, whereas the overall market cap recorded a 6% fall within the last 30 days.

Editorial credit: Rokas Tenys / shutterstock.com

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