Key Takeaways:
- NFT prices and trading volumes have seen a sharp decline, likely in response to the crypto market crash.
- The wider crypto market is suffering from the fallout of Terra's misfortunes.
NEW DELHI (CoinChapter.com) — NFT prices failed to remain immune from the crypto market rout over the past week. Blue-chip NFT projects like Bored Ape Yacht Club (BAYC) and CryptoPunks saw the floor price of their collections plunge.
The entire crypto market price has seen weakening sentiment as the TerraUSD (UST) lost its peg to the dollar on Monday. As a result, Bitcoin (BTC) prices fell below $30,000 for the first time since Jul 2021. Furthermore, Ether (ETH) prices fell below $2,000, with other altcoins plunging with the two leading cryptos.
With the Ethereum blockchain hosting most NFT platforms, a drop in Ether prices also affected NFT prices. The dip in ETH prices caused Ethereum-based NFT prices to drop against the dollar, coupled with a decline in gas fees.
Related: Terra LUNA suicide shakes the crypto market; Do Kwon “heartbroken.”
As a result of the decline in prices, NFT maker and generator applications might also find a decline in users. In detail, NFT generator applications create unique Non-Fungible Tokens (or NFTs) that have opened up a new realm of opportunities in art, music, sports, and even consumer products.
In detail, both UST and LUNA prices crashed in tandem, losing nearly 99% of their value.
NFT Prices Suffer
Some of the top NFT platforms witnessed a steep decline in their prices over the past seven days. For example, data from Cryptoslam showed that more than 75% of the top 20 projects (by sales volume in the last seven days) saw their prices fall by nearly 80% in some cases.
In contrast, NFT prices of projects built on the Terra blockchain enjoyed a considerable uptick. The spike resulted from traders looking to profit from LUNA’s price discrepancies.
Daily trading volumes on popular Terra-based NFT marketplaces, Random Earth, Knowhere, and Luart, reached their highest since Mar 1, as per data aggregator Flipside Crypto. Some highly traded Terra NFT collections included the Galactic Punks, Hell Cats, Derby Stars, and Luna Bulls.
Also Read: Blue-chip NFTs like the Bored Ape Yacht Club (BAYC) take a hit as traders shun the industry.
Meanwhile, floor prices for one of the most well-known NFT projects, BAYC, drop by nearly 25% to 88 ETH in the week beginning May 9. In detail, floor prices indicate the cheapest NFT in the collection.
The average hold period of BAYC NFTs fell by 4%, indicating collectors might be selling to recoup losses from the market. Additionally, the number of buyers has declined by nearly 19.1% over the past seven days. Overall, BAYC NFTs’ trading volume fell by nearly 46% in the last seven days.
BAYC’s sister project, Mutant Ape Yacht Club (MAYC), saw its NFT trading volume fall by 53% in the same time frame. NFT prices on the CryptoPunks platform reached a low of 53.8 ETH. Moreover, Ethereum-based NFTs’ trading volumes declined on OpenSea.
