Blue-Chip NFTs Witness Price Drop Despite Rising Sector Volume

Blue-Chip NFT Floor Prices Experience Swift Decline Despite Sector's Overall Growth

Dec 13, 2023
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Decisive drop in blue-chip NFT floor prices contradicts sector's rising volume.

Despite the overall volume growth in the non-fungible token (NFT) sector, the floor price of several blue-chip NFTs has seen a swift downturn in the past day.

Coingecko’s data reveals that premier NFT collections such as CryptoPunks, Bored Ape Yacht Club, and Mutant Ape Yacht Club experienced around a 5% drop in the last 24 hours, mirroring Bitcoin’s trajectory. Other leading collections, including Pudgy Penguins, Mad Lads, and DeGods, suffered more substantial losses, with some reaching up to 13.4%.

This downward trend in floor prices has been prevalent throughout the year, despite the overall crypto market showing signs of improvement. To put it into perspective, blue-chip NFT collections like Bored Apes and Crypto Punks have witnessed a staggering decrease of over 80% in their floor price from their peak levels.

It’s crucial to note that an NFT’s floor price may not always be an accurate reflection of its actual market value. Factors such as rarity traits among others can cause price volatility.

Significant downturns in the broader cryptocurrency market, as observed in the past 24 hours, can have a substantial impact on these NFT collections’ floor prices.

Conversely, these NFTs have experienced a surge in their trading volume during the same timeframe.

CryptoSlam’s data indicates that the NFT space saw sales surpassing $58 million through 268,252 transactions in the last 24 hours. Interestingly, NFT transactions on the Bitcoin blockchain exceeded those on Ethereum and Solana, with no signs of wash trading.

This aligns with the trend seen over the past 30 days, where the sector witnessed a remarkable 86.86% increase in trading volume, reaching $1.1 billion. This surge was accompanied by a total of 8,376,759 transactions, marking a 26.37% increase during the same period.

A recent report by DappRadar highlighted that the sector’s increasing volume signifies a shift in investor behavior, with a surge in NFT buying and selling activities. The blockchain analysis firm also pointed out that the average transaction value escalated by 114%, rising from $126 to $270 in the past month.

NFTs seem to be moving in tandem with the broader crypto market, reflecting similar patterns of investment and interest. This symbiotic relationship between NFTs and the wider fungible crypto market continues to shape the trajectory of the NFT industry,” DappRadar reports.

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