- The NFT market is crashing along with Bitcoin and Ethereum.
- The increase in wETH trades on OpenSea suggests that owners of major NFT collections such as Bored Ape Yacht Club may have sold their assets in panic.
- The decline in the dollar value of ETH exacerbated the decline in the NFT market.
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The floor prices for some of the biggest collections in the NFT market had dropped drastically along with the latest crypto market sell-off.
NFT Market Enters Panic Mode
The NFT market has taken a hit in the latest crypto selloff.
Floor prices for many of the most valuable NFT collections have dropped, with Bitcoin and Ethereum dropping the entry price of some collections by more than 20%.
“Floor price” refers to the cheapest piece available in the secondary market. This is a popular metric for determining the value of NFT collections.
According to data from NFTGO, the floor price for Bor Ape Yacht Club NFT is down 12.57% in the last 24 hours, falling from around 84 ETH to 73.43 ETH. Meanwhile, the floor price for Moonbirds, one of the exceptional collections of the year, fell to 14.88 ETH, down 17.33%. Interestingly, Cryptopunks turned out to be relatively spotless, with the cheapest punks losing only 2.67% in price.
Also, as NFT Expert Punk9058 Told on twitter Earlier today, OpenSea saw its wrapped ETH (wETH) trading volume rise as a percentage of total volume reaching an annual record of 0.2%. wETH trades often occur when sellers accept low bids on their assets, indicating that holders may panic selling in search of liquidity during weekend downturns.
The NFT market has been suffering from the broader crypto market throughout this year. While a handful of collections have defied the downward trend at different points, the market has struggled to hold onto the latest crash, after Bored Ape Yacht Club topped $430,000 on May 1. At 73.43 ETH floor price, with ETH trading around $1,260, the cheapest ape is now going for around $92,450. This is a drop of 78.5% from the peak.
Disclosure: At the time of writing, the author of this article held ETH and other cryptocurrencies.