Impact of Price Drops on NFT Market Amidst BAYC and CryptoPunks: Future Prospects
Recent data from NFTGo reveals a significant downturn in the sales volume of non-fungible tokens (NFTs) this month, resulting in the Blue-Chip NFT Index plummeting to a 30-day low.
Blue-chip NFT collections are renowned for their superior quality and potential for future growth, often characterized by high floor prices, robust communities, and prospective utility.
Among the distinguished NFT projects featuring in this category are CryptoPunks, Bored Ape Yacht Club [BAYC], CryptoKitties, and Milady.
The Blue-Chip Index evaluates the performance of these digital assets by assigning weight to their market capitalization to gauge their overall performance.
An upsurge in this index signifies an increase in the value of top NFT collections, while a decline indicates a decreasing performance in these NFTs.
NFTGo’s data indicates a sharp 26% decline in the index since March 11, hinting at a recent performance slump in top NFT collections over the past fortnight.
Diminished Glitter of Top Collections with a Glimmer of Hope
Leading the pack in market capitalization rankings are CryptoPunks and BAYC, standing as the top two NFT projects.
According to data from NFTGo, CryptoPunks boast a market capitalization of 506,000 ETH, with BAYC following closely at 136,000 ETH.
An examination of the floor price of CryptoPunks reveals a gradual decline since the start of March.
At present, an NFT from the CryptoPunks collection can be acquired for an average floor price of 49.75 ETH, valued at approximately $172,000, down from the $197,000 it commanded at the month’s commencement.
Traders have capitalized on the reduced floor price of CryptoPunks, leading to increased sales in the past 24 days compared to the initial two months of the year.
Adhering to CryptoSlam’s findings, CryptoPunks’ sales volume this month has hit $56 million, surpassing February’s $21 million by 166% and January’s $33 million by 70%.
In the case of BAYC, its floor price has also witnessed a downward trajectory since March’s onset, as highlighted by NFT Floor Price data indicating a 40% decline.
At current prices, an NFT from the BAYC collection can be purchased for $45,000.
Following a similar narrative, there has been a considerable surge in BAYC’s sales volume this month, totaling $36 million in the last 24 days, surpassing February’s $21 million by 71%.