Crypto Market Downturn Leads to Steep Drop in Blue-chip Ethereum NFTs

Recent activity calls into question how dependent NFTs are on the stability of the crypto market

article-image

Blockworks Exclusive Art by Axel Rangel

share

key takeaways

  • With lower ETH prices, floor prices of blue-chip NFT collections are going down
  • NFT trading volumes have also dropped to their lowest monthly levels

The current cryptocurrency downtrend has prices plunging across the board — and with the value of crypto falling, NFTs in dollar terms have also seen declines over the past few weeks. 

Ether, the leader of the NFT market, is trading around $2,000 at the time of publication, down from $2,800 a week ago. Terra’s stablecoin, TerraUSD (UST), and its native token, LUNA, collapsed in recent days, losing more than 99%. 

While UST de-pegged from its one-to-one tandem with the US dollar and is trading at $0.13, LUNA hovered around $0.0000914 Friday afternoon.

NFTs built on Terra, meanwhile, marked record levels of trading activity on May 11 that have since declined.

Ether’s lower prices, on the other hand, have caused a lingering drop in ETH NFT floor prices, along with lower gas fees (which power transactions on the Ethereum blockchain).

Blue-chip projects, such as Bored Ape Yacht Club (BAYC) and CryptoPunks, have been no exception. BAYC trading on OpenSea fell to its lowest point in the past month, down 63% on May 12 over a seven-day period. 

While the range of daily sales has fluctuated between eight and 67 NFTs on any given day since the beginning of May, the collection’s floor price has taken a more consistent hit.

It dropped to 89 ETH ($169,792) on May 12 and went back up to 99 ETH Friday as markets showed signs of stabilizing. BAYC’s floor price peaked at 152 ETH and nearly crashed the Ethereum network on the eve of the debut of Yuga Labs’ Otherdeed for Otherside collection in early May. 

Otherdeed NFTs — required to purchase land in the Otherside metaverse — remain in the top 10 collections with the highest trading volume since its debut on OpenSea. It ranks alongside its parent company’s other collections like BAYC and Mutant Ape Yacht Club in that respect.

Otherdeed for Otherside’s transactions have declined precipitously since launch, from $375 million in volume to $6.5 million, according to NFTGo. Even so, the collection has recorded some of the highest priced NFTs this week, according to NonFungible.com. 

Otherdeed for Otherside #59906 sold for 625 ETH, equivalent to $1.6 million.

Other NFT collections that continue to lead the charts this past week include Art Blocks, Doodles and Moonbirds — the Azuki Beanz collection also saw big numbers, even after its founder revealed he was part of three previously failed NFT projects.

Market conditions have also prompted some NFT investors to try to liquidate their holdings amid considerable losses. 

Loading Tweet..

In other NFT news, Meta began testing an NFT display feature for a select group of Instagram creators and collectors earlier this week. Once the function becomes publicly available, it could potentially affect the greater NFT market.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million