Bored Ape Yacht Club NFT – As news of FTX’s liquidity crisis and alleged mismanagement of customer funds spreads, the cryptocurrency market is thrown into disarray.
Recent Released: Tron Founder Justin Sun and FTX are resuming Tron withdrawals
The NFT market has been shaken by the current crisis, and investors are selling in a frenzy. Bored Ape Yacht Club NFTs’ “floor price” has dropped significantly as the FTX debacle continues and investors remain uncertain about the future of cryptocurrency exchange.
Bored Ape Yacht Club NFT
The cheapest Bored Ape Yacht Club NFT that can be purchased at the time of this writing is listed for 57.5 ETH, or about $76,400. This equates to a 7% loss in ETH value over the past 24 hours. ETH’s value has been falling this week by 13%, and its USD equivalent has dropped by about 24% in the past day.
Since its all-time high of around $429,000 (152 ETH) on April 29 of this year, the price of one Bored Ape NFTs (in USD) has dropped significantly. That’s a drop of 82%!
The price of Bored Ape has dropped this week for a number of reasons that make sense. Concern about the future of the cryptocurrency market as a whole has increased since the FTX crash. For some investors, this could mean selling “blue chip” NFT assets. It turns out that there is on-chain proof that this behaviour actually occurs.
WETH trades as a percentage of total OpenSea volume is above 50% for the first time today. The chart below is pretty wild.
Everyone accepting the bids that are out there.
This is up from 40% when I tweeted this chart earlier. pic.twitter.com/5Zo66UPLfF
— NFTstatistics.eth (@punk9059) November 9, 2022
Most NFT owners are now accepting offers that are below market value. As a result, this may indicate that sellers are rushing to unload their NFTs before the market further unravels.
The cryptocurrency exchange platform BendDAO is another domino in the collapse of the crypto industry. A user can utilise this method to borrow cryptocurrency using NFTs as collateral. Since the loans were liquidated, BendDAO is now auctioning off 14 Bored Ape NFTs, all of which have current bids far lower than the market floor price on key marketplace platforms. This demonstrates that there is a lack of interest in the assets.
In August, when BendDAO ran out of ETH, it encountered a severe liquidity problem. And the bids on the seized NFTs from the debt liquidation auction were too low to proceed. Finally, participants in the protocol voted to lower the liquidation barrier, making it easier for BendDAO to unload NFTs for negative debt.
Source: Google Trend