NOIDA (CoinChapter.com)— Those who bought the Bored Ape Yacht Club NFTs have had to face a rude awakening as BAYC has lost millions for NFT investors. When one thinks of NFTs, likely the first image that comes to mind is a the Bored Ape Yacht Club, or the BAYC NFT project, which has seen a 90% drop from its peak of 128 ETH.
Non-fungible tokens (NFTs) promised a digital revolution where art and ownership converged in unprecedented ways. Collections like BAYC captured imaginations and wallets alike, boasting impressive valuations and celebrity endorsements.
Yet, as the dust settles, many investors, particularly novices drawn by hype, found themselves facing substantial losses. The gradual drop in the Bored Ape Yacht Collection NFTs’ floor prices resulted in buyers entering the market to buy the dip but ending up with losses.
Unlike the recent crypto market flash crash, the plunge in NFTs floor prices was not sudden.
The Plunge of BAYC NFTs
The Bored Ape Yacht Club, once a flagship in the Ethereum NFT market, has witnessed its floor price tumble to distressing lows as BAYC lost millions. Recent data indicates that BAYC’s floor price momentarily dipped below 11 Ethereum (ETH), a fall of 12.08% in just one day and a 90% drop from its peak of 128 ETH.
The stark decrease marks the collection’s lowest valuation since August 2021.
Even in 2024, the floor price of BAYC NFTs dropped by nearly 58% from Jan. 1. A rough calculation shows that the drop in NFT floor price translates into losses worth $3.27 billion for the 10,000 BAYC NFTs. Though not an exact figure, the calculation shows the extent of losses NFT traders suffered.
Furthermore, the drop in NFT floor prices is not limited to BAYC only. NFT project CryptoPunks’ floor price has also dropped to Aug. 2021 levels after dropping over 63% from its peak floor price of 120 ETH.
Such fluctuations exemplify the precarious nature of NFT investments, which soared during the crypto boom but have since plummeted, leaving many investors with devalued assets and financial distress.
BAYC and other NFTs attracted many investors, mostly due to the hype surrounding the projects. However, due to the price drop, these investors are now facing losses in the millions.
Not All NFTs Are Dying, Though
Users who had bought BAYC NFTs would have had better luck with Bitcoin ordinals, with the project injecting some dynamism into the scene, hinting at a shift in investor focus and potentially revitalizing market interest.
Despite this, the overall sentiment remains cautious as the market recalibrates, exploring new models and platforms that could offer more sustainable growth and value retention.
Some NFT projects have started migrating to Bitcoin to become part of the Ordinals collection, highlighting the growing popularity of the blockchain as an NFT hub.
As the NFT market continues to mature, potential investors are advised to conduct thorough research and consider the inherent volatility before committing capital.
