NFT prices take a hit as cryptocurrency bear market deepens

NFT prices take a hit as cryptocurrency bear market deepens

Cryptocurrencies certainly have a way of humiliating even the most confident of themselves and this market is not for the faint of heart. Investors in NFTs have entered what appears to be a bear market and the recent chaos is also taking a toll on morale in the community.

The decline in NFT prices came as the US Federal Reserve raised interest rates, platforms based on Terra’s Luna and UST tokens crashed, and traders got used to the idea that the entire industry could be in a bear market.

Things are not as bad as in 2018, but the NFT market is not as mature. Despite this, investors are already strapping on their belts for potential future gains and ways to survive the current market downturn.

Will blue-chip NFTs hold the line?

Week-over-week, most blue-chip NFTs maintained their position in the top 10 for total sales volume, despite some low prices falling nearly 25% in the last 7 days.

Mutant Ape Yacht Club monthly minimum price. Source: NFTPriceFloor

In particular, Yuga Labs’ Otherdeed NFTs, Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), have seen a decline in their floor price. BAYC has recovered from the low price drop following the launch of Otherdeed, and has seen a minimum decline of 3% in the last 7 days. MAYC has seen a decline of almost 13% in its minimum price in the last 7 days.

MAYC has been quite the rollercoaster ride, falling sharply from its peak at 41.2 Ether ($120,386 at press time). MAYC is currently valued at 19.6 Ether, an approximate 53% discount since MAYC surged in large part due to its eligibility to claim an Otherside NFT from Yuga Labs.

Despite all the hype and controversy surrounding the Otherdeed NFT auction, the project remains at the top of the charts in total volume, even after a 75% drop in the last 7 days.

NFT prices take a hit as cryptocurrency bear market deepens
Market capitalization and 7-day volume of the Otherdeed collection. Source: NFTGo

The functionality of these digital lands is still not entirely clear and Otherdeed has seen its price bottom in a long downward trend. In the last 7 days, the minimum price has decreased by 1.2%, and since minting, the price has fallen by 55% from its all-time high of 7.4 Ether.

The RTFKT studio’s CloneX price floor has fallen by almost 13% in the last 7 days, with volume declining by just over 12%. However, these figures do not affect the community.

Despite the recent downturn, the RTFKT ecosystem is in full swing after celebrating the opening of contemporary Japanese artist Takashi Murakami’s “An Arrow Through History” exhibition in New York City. The exhibition is currently on view at the Gagosian Gallery, featuring CloneX-inspired pieces along with pieces from Murakami’s first NFT collection, Murakami Flowers.

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Even with the NFT market cooling off, the price appears to be selling hype for some investors looking to cash in on the news. It turns out that Azuki NFT, proclaimed as a blue-chip collection, was the one that fell the most after one of its founders, Zagabond, openly admitted its tumultuous past, plagued with problems with the CryptoPhunks and Tendies community.

NFT investors buy the news and rumors

As the famous adage goes, traders “buy the buzz, sell the news” in an attempt to maximize profits. Upon Zagabond’s admission, holders decided to vote with their assets and Azuki’s minimum price fell by 74%.

Even with the current volatility, Azuki currently ranks first in total sales volume on OpenSea.

NFTs are still considered the Wild West, but some investors are learning that everyone’s barometer of morals and ethics is slightly different. Upon hearing the news, Azuki’s floor price fell sharply, but certain influencers of the NFT space were quick to jump up and sweep the ground for possible future opportunities.

Since May 10, the Azuki price floor has seen a steady rise above 10 Ether, an impressive 200% increase in total sales volume that came after the news broke.

NFT prices take a hit as cryptocurrency bear market deepens
Daily transactions and 7-day liquidity from the Azuki collection. Source: NFTGo

Azuki’s associated collection, BEANZ, has also seen an 83% reduction in its minimum price. Even with the 248% increase in trading volume, BEANZ’s total sales volume has decreased by 64% in the last 7 days.

Before the reveal, BEANZ was trading at 6.8 Ether and this price dropped steadily after the reveal to its current price of 1.65 Ether.

NFT prices take a hit as cryptocurrency bear market deepens
BEANZ 7-day minimum price. Source: NFTPriceFloor

Other long-awaited anime-inspired collections have appeared, such as PXN: Ghost division NFT, which slid to the top of the volume charts on OpenSea. Ragnarok Meta was also up for a brief moment in its pre-release stage, but rumors that Zagabond was behind the project seem to be weighing on the price.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should do your own research when making a decision.

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