The current extreme market conditions of the crypto market have had an unfortunate impact on the NFT market. Monthly trading volume is down about 56% to $500 million. Additionally, blue-chip NFT projects that were once considered stable and long-term investments are now being impacted, including BAYC.
On the impact of the bear market on BAYC PFPs
The June 13 market sell-off has led to a drop in reserve prices for top NFT projects including BAYC and Bored Ape Yacht Club. BAYC floor price dropped to 74 ETH, approximately $92,223. This is a significant drop of about 51.6% from the all-time high of 153 ETH.
The NFT market has been largely resilient in the current bear market conditions. Investors have built sizeable NFT portfolios and invested in blue chip NFT projects as long-term investments. However, this significant decline shows that even top-tier NFTs like BAYC are not immune to bear market conditions.
Did a hack fuel this low reserve price?
A day before that drop The Yuga Labs co-founder urged BAYC NFT owners to beware of potential Twitter hackers. Also, Yuga Labs deleted part of the code, which would make BAYC PFPs more vulnerable to hackers. Therefore, if hackers had indeed exploited the Bored Ape Yacht Club, there would have been a surplus of NFTs, leading to an even bigger crash.
Therefore, it is safe to assume that the fall in the floor price is due to the bear market conditions and the major crypto sell-off that took place on June 13th. Undoubtedly, this bad news has hit the Bored Ape Yacht Club community hard, especially since they already had to deal with BAYC Discord hackers earlier this month.
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All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, do your own research before making any type of investment.
