The long crypto winter and recent crash have pushed down NFT floor prices to the lowest of lows, leaving almost every investor and trader in a trance. Top collections like Bored Ape Yacht Club, Mutant Ape Yacht Club, CryptoPunks, etc, dropped from their top ranks on the marketplace indicating a massive sell-off on Monday.
The Crypto crash that happened in May continues to leave its traces in June as well. Many had high hopes for the sixth month but it didn’t meet the expectations and caused a collective breakdown this week.
The biggest reason for this week’s crypto crash is due to the CPI which increased by 8.6%. Bitcoin failed to meet its support level and dropped below $26K causing a ruckus in the crypto market. As soon as the market dropped, the NFT floor prices also dropped. The investors started selling off their expensive NFTs to avoid further losses.
Based on CoinMarketCap data, the top three collections, BAYC, MAYC, and Cryptopunks dropped by 31%, 27%, and 16% respectively on 12 June 2022. This was a huge downtrend which caused a lot of stress among NFT holders because the top NFTs that had been holding up well for the past few months ended up at the lowest for the day.
Overall, the three collections saw a 40.9%, 36.03%, and 40.34% decrease in prices for the past week in ETH/USD based on DappRadar data.
BAYC drops to 86 ETH
When comparing the price of BAYC in ETH/USD, the data from CoinGecko shows a downtrend:
According to the chart, the floor price dropped on 13 June and later rose, then dropped again. Currently, the floor price is 86 ETH (94,731 USD) with 1,502.56 ETH (1,654,498 USD) 24-hour trading volume.
MAYC suffers from a loss
MAYC also failed to maintain its initial support line and dropped low due to the high sell-out.
Here is the graph from CoinGecko to explain the floor price condition for the Mutant Ape Yacht Club NFT collection:
MAYC saw an extreme drop on 13 and 14 June and later rose upwards. The current floor price is 17.3 ETH (19,056 USD) with a 24-hour trading volume of 536.91 ETH (591,422 USD) on OpenSea.
CryptoPunks, which is one of the earliest NFT collections, have always ranked top with each NFT worth thousands of dollars. However, it failed to escape the crypto winter. The floor prices saw a decrease causing the NFT collection to drop from its original ranking.
According to the CoinGecko chart, the price dropped below on June 8 and then again on June 14. At the time of writing, the floor price is 48.9 ETH (53,864 USD) with 466.49 ETH (513,852 USD) 24-hour trading volume. The trading volume saw a 0.12% decrease based on CoinMarketCap.
Other collections like goblintown.wtf, CLONE X, Moonbirds, Doodles, etc. also saw a downward trend. The market right now is still in a trance of distrust and anxiety as prices continue to fluctuate every minute.
How will the NFT market recover?
The NFT industry is directly linked to the crypto market. As long as cryptocurrencies manage to pick up a bullish pattern, the NFT community might be able to see an increase in the floor prices as well. Otherwise, the NFT market will continue to drop as cryptocurrency prices drop.
According to current CoinMarketCap data, BTC trades at $21k with a 29.66% decline in the last 7 days, ETH is at $1,102 with a 37.74% 7-day decrease, BNB is at $218 with a 24.16% 7-day decline, Cardano (ADA) is trading at $0.4946, USDC at $1.00, and Tether at $0.999, while U.S. Dollar Index (DXY) is at $104.35. at the time of writing.