NFT Wars: CryptoPunks Rise, BAYCs Tumble

Isn’t it the old monkey we learn to grimace? – These good old CryptoPunks, long denigrated in favor of new, trendier NFT collections, finally seem to be getting back on their feet. Indeed, the bottom price (or bottom price) of our favorite pixels has just reached that of the famous monkeys of the . exceeded Bored Ape Yacht Club (BAYC). An event that hasn’t happened since January 2022. We tell you everything in this article.

BAYCs, old-fashioned NFTs?

Remember that not so long ago the famous BAYCs were in the spotlight. Celebrities like Justin Bieber Where Neymar grabbed them at exorbitant prices to “be part of the club”. It must be said that the collection launched by Yuga Labs to want something. Private parties, gifts worth thousands of euros, airdrop in ApeCointhe collection’s own cryptocurrency or the construction of a dedicated metaverse. In short, the Yugalabs teams were on all fronts, in all battles, surfing the innovations of the moment to promote their collection.

Yuga Labs is their armed monkeys to surf all the trends

Only then, the bear market doing its job and settling in the market permanently, this craze now seems to have died down. And the bottom price of the collection couldn’t escape it. He is now flirting with 67ETHa trifle of $107,000 in current Ethereum price. Which is still an amount. However, at the peak at the end of April 2022, it was necessary to pay no less than 136ETH to acquire the cheapest of them, at a time when theEthereum flirted with the 3000$ unit. That’s $408,000, far from within the reach of all budgets. While at the same time only 62 small ETH was enough to pay for a CryptoPunk.

On the other hand, BAYC’s bottom price is falling like a pancake today, while that of CryptoPunks is rising. Slowly but surely, these rebellious figures filled with pixels reach the 66.5ETH, after briefly dropping around 50 ETH. Would investors be so nostalgic to return to their first love? Or is there a more sober reason behind this mystery?

The price curve of NFT CryptoPunks aligns with that of BAYC, which had not happened since January 2022.
Comparison of the bottom price of BAYC and CryptoPunks NFTs – source: Dune Analytics

>> To buy Ether without pulling a face it’s on PrimeXBT (commercial link) <

Cryptopunks in the spotlight again?

although some news increase the price of their CryptoPunks competitors, there could be a more technical reason behind this ape-like drop, driving investors away. And the culprit could be the BendDAO platform. This platform allows NFT holders to deposit them as collateral against borrowing ETH. At first glance a good deal. Except that in these times of decline, many borrowers are dangerously approaching the liquidation limit which is set at 70% of the NFT’s value. Once achieved, BendDAO recovers the NFT placed as collateral and sells it to the highest bidder. As a result, the floor price falls, leading to the liquidation of the other holders of these collections. BendDAO collects the newly liquidated NFTs to sell them again, further lowering the price floor and fueling the infernal loop.

Unlike BAYCs, Cryptopunks are not listed on BrendDAO and are therefore unaffected.
CryptoPunks are on the rise

2.8% of BAYC and 1.6% of MAYC (Mutant Ape Yach Club) are currently deposited on the platform as collateral. While there is a vote to propose raising the liquidation limit to 95% of the value of these NFTs instead of 70%, the outlook is not very reassuring. However, there are no CryptoPunks present on the platform, which reassures their holders.

Whether the CryptoPunks face the BAYCs again for a long time or the latter remain in pole position, for Yuga Labs, it doesn’t really matter. Indeed, the latter bought the CryptoPunks and Meebits Collectionspreviously owned by the company Larva Labs. The Yuga Labs company seems to specialize in acquiring luxury NFT collections. In a world where NFTs are multiplying every day with new use cases, from gaming to music, from art to social networking, there is no doubt that this strategy could prove a winner in the future.

Prefer to keep your monkeys warm in your wallet? Choose a solid and credible partner to buy your cryptos. Register now on the PrimeXBT platform (commercial link).

Leave a Comment