For the first time since October 2021, the floor price for Bored Ape NFTs dropped below 30 ETH.
In a significant development for the NFT market, approximately 1,200 NFTs have been liquidated over the previous three days as a result of a steep drop in the floor prices of well-known or “blue-chip” NFTs. The value of NFTs used as collateral for loans has been impacted by this abrupt decline, which has raised worries within the NFT community.
Data from the NFT analysis website Snow Genesis shows that many NFTs that were used as collateral for loans are now in danger of being liquidated. Although some debtors have been able to pay off their obligations, many NFTs have already been put up for auction as a result of the drop in value. According to Snow Genesis, the most recent NFT liquidations are shown in the list below.
Azuki, CloneX, MAYC, and BAYC are just a few examples of the blue-chip NFTs that investors who had taken loans against them had suffered the most from during this period of market unpredictability, according to Wumbo Labs, a significant player in the NFT field. With 636 NFTs, or 3% of its total supply, affected, the Beanz NFT collection suffered the most dramatic liquidation of all the collections afflicted.
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Concerns about the market’s volatility and potential hazards have been raised by the recent wave of NFT liquidations. Investors and other players in the NFT market are keenly watching these trends as they try to determine what they mean and whether there are any possibilities presented by the changing value of NFTs.
Related: 50% of stolen NFTs are sold within 3 hours says PeckShield
NFTs floor price tank
Surprisingly, despite the general upward trend in the broader crypto market, the floor price of numerous NFT collections fell precipitously during the past week. Investors and aficionados alike have taken notice of this abrupt decrease, illustrating the NFT market’s intrinsic volatility.
On July 2nd, the floor price of Bored Ape NFTs experienced a huge decline, falling below 30 ETH. Since October 2021, its value has been at its lowest. According to Coingecko data, the collection was able to make a small comeback and now has a floor price of 31.5 ETH.
Previous sales of Bored Ape NFTs had reached astonishing heights, with some exceeding 500 ETH. Justin Bieber and other well-known individuals have even invested over $1 million in these collections.
Due to the disappointing reception of its Elementals collection’s publication, Azuki, another well-known NFT collection, sustained significant losses. Members of the community were unhappy with the collection’s floor price because it fell by more than 20%. As a result, there have been conversations within the community concerning the possibility of suing Zagabond for 20,000 ETH.
Other high-end NFT collections, such as DeGods, Pudgy Pegions, Azuki Elementals, and BAKC Moonbirds, also experienced large drops in value over the reporting period in addition to Bored Ape and Azuki. The total hazard and risk of investing in NFTs are highlighted by this declining trend across several collections.
Related: AzukiDAO Launches Proposal to Recover 20,000 ETH from Founder ‘Zagabond’
The most recent price swings in the NFT market serve as a reminder that even when the larger crypto market is seeing strong momentum, the sector is not immune to market volatility. It emphasizes the significance of extensive investigation, careful consideration, and risk management for investors interested in the NFT sector.
Participants must continue to keep up with the most recent changes and carefully evaluate the performance of various collections as the NFT market continues to change.
A diversified investing strategy can help to reduce potential risks and manage the constantly shifting NFT market. These strategies also help to understand the factors that affect NFT prices.