NFT Wars: CryptoPunks Soar, BAYCs Tumble

Isn’t it the old monkey we learn to grimace? – Long downplayed in favor of new trendier NFT collections, these good old CryptoPunks finally seem to be getting back on their feet. In fact, the floor price (or floor price) of our favorite pixels has just surpassed that of the famous monkeys i Bored Ape Yacht Club (BAYC). An event that had not happened since January 2022. We tell you everything in this article.

BAYCs, old fashioned NFTs?

Remember, not so long ago the famous BAYCs were in the limelight. Celebrities like it justin bieber Where Neymar snapped them up at exorbitant prices to “be part of the club”. It must be said that the collection launched by Yuga Labs had something to wish for. Private parties, gifts worth thousands of euros, airdrop in ApeCointhe collection’s own cryptocurrency or building one 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 are their armed monkeys to surf all trends

Only when the bear market does its job and settles permanently in the market does this craze now appear to be settled. And base price on the collection don’t let it go. He is now flirting with 67ETHa paltry $107,000 in current Ethereum price. Which is still a sum. At its peak at the end of April 2022, however, it was necessary to spend no less than 136ETH to acquire the cheapest of them, at a time when theEthereum flirted with the 3000$ unit. A sum of $408,000 is therefore far from within the reach of all budgets. While at the same time only 62 small ETH was enough to afford a CryptoPunk.

On the other hand, the bottom price of BAYC is falling like a pancake today, while it is rising on CryptoPunks. Slowly but surely, these rebellious figures are filled with pixels 66.5ETH, after a brief drop around 50 ETH. Would investors be so nostalgic to return to their first love? Or is there a more mundane reason behind this mystery?

The price curve of NFT CryptoPunks joins that of BAYC, which had not happened since January 2022.
Comparison of the floor price of BAYC and CryptoPunk’s NFTs – source: Dune Analytics

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

Cryptopunks back in the spotlight?

Though some news could boost the price of their CryptoPunks competitors, a more technical reason could be hiding behind this simic decline to the point where investors are scared away. And the culprit could be BendDAO platform. This platform offers NFT holders to deposit them as collateral against borrowing ETH. A good deal at first glance. Except that in these downturns, many borrowers are dangerously close to the liquidation threshold set at 70% of the value of the NFT. Once reached, BendDAO recovers the NFT placed as collateral and sells it to the highest bidder. As a result, the floor price falls, which leads to the liquidation of the other holders of these collections. BendDAO collects the newly liquidated NFTs to sell them back, which further lowers the floor price and feeds the infernal loop.

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

2.8% of BAYC and 1.6% of MAYC (Mutant Ape Yacht Club) are currently deposited as collateral on the platform. Although a vote is underway 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 are back ahead of the BAYCs for a long time, or whether the latter remain in pole position, for Yuga Labs, it does not matter. In fact, the latter bought in March last year CryptoPunk’s and Meebit’s collectionspreviously owned by the company Larva Labs. The Yuga Labs company seems to specialize in acquiring luxurious NFT collections. In a world where NFTs are multiplying every day with new use cases, from games to music, from art to social networks, there is no doubt that this strategy could prove to be a winner in the future.

Prefer to keep your monkeys warm in your purse? To buy your cryptos, choose a solid and trustworthy partner. Sign up now on the PrimeXBT platform (commercial link).

Leave a Comment