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BAYC, Azuki and Blur face tumultuous market
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This week we dive into the current, not so pretty, status of the NFT space. We highlight the recent trend, internal conflicts developing and the reset of valuations back to 2021 levels. Are NFTs contrarian again?
Network FeesâââSum of total fees spent to use a particular blockchain. This tracks the willingness to spend and demand to use Bitcoin or Ether.
- Bitcoin fees declined to their lowest since April as Ordinals-related activity declines
- Ethereum fees spiked by over 50%, with a new, suspicious token VMPX making up 18% of the gas consumption per Ultrasound.money
Exchanges NetflowsâââThe net amount of inflows minus outflows of a specific crypto-asset going in/out of centralized exchanges
- Bitcoin and Ether recorded relatively modest outflows from CEXs, seemingly unaffected by Binance losing key executives
NFT Capitulation Continues
A few months back we wrote about the NFT capitulation taking place. Collection prices and volumes have been dropping, and have accelerated this trend over the past few weeks, with many of the largest collections reaching their lowest prices in two years.
Via ITBâs Free NFTÂ Insights
Two-Year LowsâââBoth Bored Ape Yacht Club and CryptoPunks hit a two-year low in price this week, while other collections drop further
- The average price for an Azuki dropped nearly 50% just in the last 7Â days
- Azuki prices went from 16 ETH down to 6 ETH (63%) since the release of Elementals, their newly released collection with nearly identical artwork to the original Azukis, leading to community upheaval
- Only 3 out of the top 20 collections based on their market cap (average price x supply) increased in price over the last week
Via ITBâs Free NFTÂ Insights
NFT Sales Trending LowerâââThe number of NFT sales on Ethereum is on track to its lowest week since June 2021
- Weekly NFT sales on Ethereum are on pace to reach about 50k, making the 750k high recorded last year seem like a distant memory
- Volumes are down even further (~97%) as interest fades, along with NFT wash-trading
Unsurprisingly NFT marketplaces are being hit by the recent trend.
Via ITBâs BLUR financial indicators
98.88% Losing MoneyâââThe vast majority of BLUR holders are losing on their holdings relative to the price when they received the tokens
- Despite surpassing OpenSea as the NFT marketplace with most volume, Blurâs token is down 94% within just five months
- Blurâs current fully diluted valuation ($950M) is now lower than its last rumored private funding valuation of $1B
- With the recent downturn in the NFT space, narratives have been building against Blur for its incentive program potentially affecting floor prices, with the co-founder dismissing these claims in a thread as âbad takesâ
Between Azuki, Blur and other projects, weâre seeing in-fighting within the NFT community as prices continue to fall. While the future for the space seem as uncertain as ever, at least it is clear that NFTs are now a contrarian bet.
NFT Capitulation Continues was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
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