Earlier this week, an astonishing news broke within the world of non-fungible tokens (NFTs). It was revealed that a famous singer, Justin Bieber, had purchased an NFT art piece called a Bored Ape for a whopping $1.24 million back in January 2022. However, the current value of that very piece has plummeted to around $60,000.
The Bored Ape is part of an exclusive collection known as The Bored Ape Yacht Club (BAYC) – a set of 10,000 unique avatars. This collection made its grand debut in 2021 during the peak of the crypto bull market. Notable figures such as Jimmy Fallon, Stephen Curry, Tom Brady, Mark Cuban, Gwyneth Paltrow, Snoop Dogg, and many others eagerly joined in on acquiring their own Bored Ape.
But recent data from OpenSea, a prominent online marketplace for NFTs, has disclosed an unfortunate truth. The BAYC has experienced a significant decline, reaching a two-year low. The floor price, which signifies the minimum cost of any piece within the collection, has plummeted to 31 ETH or approximately $59,000 – the lowest it has been since November 2021. This alarming development has left many pondering over the reasons behind this downfall and what lies ahead.
Uncovering the Factors Behind the Fall
To gain insights on this matter, I had the opportunity to speak with Sara Gherghelas, a distinguished blockchain analyst at DappRadar – a renowned platform specializing in tracking and analyzing decentralized apps. According to Gherghelas, there are multiple factors accounting for this remarkable decline in the BAYC’s value.
Stay Tuned for More Updates
While the BAYC’s current situation may raise countless questions, it also paves the way for further exploration and examination. Join the conversation on Twitter as we delve deeper into this matter. Your valuable insights are most welcome!
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The BAYC and the Controversy Surrounding Its Ecosystem
Recently, the Bored Ape Yacht Club (BAYC) made its debut on Blend, a peer-to-peer lending platform. This innovative platform allows users to borrow NFTs and repay them with smaller down payments. However, around the same time, a controversy erupted within the Yuga Labs ecosystem, which owns the BAYC and several other crypto and NFT projects.
In 2022, Yuga Labs introduced ApeCoin, a crypto token designed to enhance gaming and commerce within the BAYC ecosystem. Unfortunately, this initiative faced backlash when it was revealed that the decentralized autonomous organization managing ApeCoin’s affairs was allegedly paying its leadership board exorbitant monthly amounts, reaching up to $75,000. Naturally, this compensation led to disillusionment among community members, resulting in a negative perception of the entire BAYC ecosystem.
Despite these concerns, Yuga Labs has remained silent and refrained from commenting on the matter.
In addition to the controversy, another significant factor contributing to the decline in prices is the overall cooling of the larger NFT market. These cooling effects have been attributed to broader market conditions and the so-called crypto winter. Moreover, there has been a general decline in enthusiasm for digital art.
It remains to be seen how these developments will shape the future of the BAYC ecosystem and its position within the NFT market.
NFT Trading Volume Surges in June
Despite a recent downturn in the market, the trading volume for non-fungible tokens (NFTs) saw a significant increase in June. According to industry expert Gherghelas, the trading volume reached $888 million, surpassing the previous month’s total of $675 million. However, it’s important to differentiate between trading volume and market hype. A lower trading volume does not necessarily indicate a decline in market interest or activity. In fact, June saw a total sales count of 4.26 million, suggesting a shift in traders’ focus rather than a loss of interest.
BlackRock Refiles for Bitcoin ETF
In other cryptocurrency news, investment firm BlackRock has refiled for a bitcoin exchange-traded fund (ETF) after its previous filing was deemed inadequate by the U.S. Securities and Exchange Commission. BlackRock’s CEO Larry Fink recently compared bitcoin to digitizing gold in an interview with FOX Business. Initially skeptical due to its association with illicit activities, Fink now believes that crypto, like bitcoin, is becoming more accessible and functioning as a digital form of gold.
Bitcoin and Ether Prices
As of Thursday afternoon, Bitcoin is up 1.62% in the past week, trading at $30,257, while Ether has risen by 3.86% to $1885.18, according to CoinDesk data.
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