Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In?

CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In?

DailyCoinDailyCoin2024/08/22 14:30
By:DailyCoin
  • NFT art remains divisive, with critics blasting it as worthless.
  • Global NFT sales are a fraction of their peak.
  • Blue chip collections, including CryptoPunks, have shown signs of recovery.

The record-breaking $69 million sale of Beeple’s The First 5,000 Days in March 2021 catapulted non-fungible tokens (NFTs) into the mainstream consciousness. This landmark event ignited a frenzy of activity, leading to the launch of countless new NFT collections. 

Sponsored

However, the initial excitement has since waned substantially. Prices and trading volumes have plunged, and blue-chip collections like CryptoPunks and Bored Ape Yacht Club (BAYC) have diminished their appeal. Yet, a recent resurgence in blue chip prices has led some industry observers to suggest the market bottom is in.

CryptoPunks, BAYC See Bounce-Back

Noting the recent bounce-back in several blue chip NFTs, Su Zhu, co-founder of the defunct Three Arrows Capital crypto hedge fund, stated that Ethereum NFTs are showing signs of bottoming. 

There are a lot of signs of bottoming in the ethereum nft markets

Punks deals below

Azuki, bayc, all bottomed also on high volumes

Probably nothing, looks rare, wagmi sistas, etc https://t.co/X6voBRMRPN

— 朱溯 🐂 (@zhusu) August 21, 2024

Data from NFTPriceFloor corroborated Zhu’s assessment, showing that CryptoPunks recorded a local price floor bottom of 19.7 ETH on August 5. The floor price has since rebounded to 29.45 ETH as of August 21, accompanied by a significant increase in trading volume from 233.4 ETH to 1,384 ETH over the same period.

CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In? image 0 CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In? image 1 CryptoPunks price floor and volume, per NFTPriceFloor

A similar pattern has emerged for BAYC. The collection reached a local price floor bottom of 8.31 ETH on June 25, with a trading volume of 403.5 ETH. Since then, the floor price has reversed course, climbing to 12.8 ETH on August 21, albeit on a a lower volume of 249 ETH than the local bottom.

CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In? image 2 CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In? image 3 BAYC price floor and volume, per NFTPriceFloor

With CryptoPunks and BAYC being the top two collections by market cap, the price uptick bolds well for the NFT sector. However, some believe there’s a long way to go before the bounce-back can be called a recovery.

Global NFT Sales Still Down

Despite signs that the NFT market may be bottoming out, caution remains. YouTuber Crypto Gorilla noted the recent rise in blue-chip NFT prices but warned against premature optimism , pointing out that these assets are still down 80-90% from their all-time highs.

Sponsored

The YouTuber warned that the NFT market “is not out of the woods” yet, citing several headwinds to investor confidence. These included the Fed holding interest rates at 18-year highs and the absence of retail investors in crypto and NFTs.

Data from CryptoSlam revealed global monthly NFT sales continue to trend downwards . 2024’s peak sales of $1.6 billion came in March. Since then, sales have continued to fall, plummeting by 73% from the yearly top, with July sales amounting to $427.7 million. 

CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In? image 4 CryptoPunks, BAYC Bounce Back: Is the NFT Bottom In? image 5 Global NFT sales by month, per CryptoSlam

Critics argue that NFT artwork lacks value and utility, especially since users can easily copy popular images. It remains uncertain whether NFT art has managed to shake this narrative, particularly given the ongoing sales slump. 

On the Flipside

  • NFT advocate Mark Cuban sold some of his collection recently, suggesting he may have decided to call it quits with non-fungibles.
  • There are insufficient data points to decisively say the NFT bottom is in.
  • NFT use cases extend beyond art, including ticketing and medical records.

Why This Matters

The recent signs of life in the NFT market offer hope for collectors and investors who have weathered the sector’s prolonged slump.

NFT artists sue the SEC to clarify whether securities laws apply to digital art:
SEC Faces Lawsuit Over Claiming Jurisdiction on NFTs

Cardano gives the Chang hard fork a soft launch date:
Cardano’s Chang Hard Fork Days Away from Launch

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

SEC Chair Gary Gensler Gives First Sign He May Resign – Has He Made His Final Announcement?

SEC Chairman Gary Gensler, who is disliked by the cryptocurrency world, gave the first signal that he may resign.

Bitcoinsistemi2024/11/15 01:44