NFT
In an unexpected turn of events, the floor prices of numerous blue-chip NFTs fell below their value for the first time in over a year. For the first time since November 2021, the floor price of BAYC has gone below 50 ETH, raising worries among NFT investors.
The decrease has raised concerns about the market’s long-term viability for a collection whose floor price peaked at more than 144 ETH. While some experts remain positive about the future, a major pullback like this may be unfavorable for short-term traders.
According to NFT Price Floor, the BAYC floor price on April 22 was 44.5 ETH and is presently trading at 49.4 ETH.
Source: NFT Price Floor
This indicates that the number of dealers interested in purchasing a portion of the collection has declined. As a result, it has had a negative impact on the market cap.
Not only BAYC but also Wrapped CryptoPunks and Mutant Ape Yacht Club (MAYC) have lost more than 10% of their value in the last week. NFT prices have fallen due to a variety of causes, including decreased demand, greater supply, and the influence of crypto market swings.
Trading volume across marketplaces has also decreased significantly, and despite Blur and Opensea keeping the NFT industry alive, the total weekly trading volume has been less than $300 million. The biggest reason for falling floor pricing is undoubtedly diminishing demand, as dealers’ weekly presence has decreased to November 2021 lows.
Source: Dune
NFTs gained traction around the end of 2021, and by 2022, they were the most popular in the DeFi market. Nevertheless, investors started to lose interest after the Q2 2022 crypto market contagion and subsequent collapses.
