CRYPT — The lowest NFT price at Bored Ape Yacht Club was $400,000 at its peak. However, its price floor has dropped to a level not seen since the heady days of August 2021, making it more affordable for the average human being. Several reasons have contributed to the recovery of the BAYC collection. These include market sentiment, the apparent disappearance of relevance, massive whale sales and less media coverage. Experts, however, have come to the conclusion that recent developments in Blur ecology may have had the most effect.
Blur’s rewards program began earlier this year to much fanfare. Massive trading volumes were generated as people tried to “farm” $BLUR airdrop coins. The company then released its Blend lending platform, which gave investors access to ether (ETH) locked in their blue chip NFTs. These events have combined to create favorable conditions for a select group of investors to engage in massive NFT BAYC trades with the aim of reaping additional benefits. The end result, however, was a death spiral for price floor BAYC, from which it has yet to recover.
The NFT blue chip market as a whole fell, but BAYC’s decline was among the most severe. CryptoPunks, another major NFT, also saw a precipitous decline in value, though not as severe as its gorilla sibling. For now, however, the biggest concern is how much of these NFTs are still under lease. Essentially, a liquidity crisis could be looming on the horizon as the price of the ETH token climbs and the floor price of the NFT drops. A further escalation of the scenario may occur if lenders were forced to seize the collateral and sell it at a loss. The events of the next few months, however, can only be seen over time.