June 15, 2022
By Murtuza Merchant
The crypto market’s current extreme market conditions have had an unfortunate effect on the NFT market. Monthly trading volumes have dropped by approximately 56% to $500 million. Additionally, blue-chip NFT projects – once thought to be stable and long-term investments – are now being impacted, including BAYC.
About the bear market’s impact on BAYC PFPs
The June 13 market sell-off has led to the decrease in the floor prices of top NFT projects, including BAYC, or Bored Ape Yacht Club. The BAYC floor price tanked to 74 ETH, approximately $92,223. This is a significant drop from the all-time high of 153 ETH by about 51.6%.
The NFT market has been largely resilient amongst the current bear market conditions. Investors have built substantial NFT portfolios, investing in blue-chip NFT projects as long-term investments. However, this significant drop shows that even blue-chip NFTs such as BAYC are not immune to bear market conditions.
Did a hack fuel this low floor price?
A day before this drop, Yuga Labs’ co-founder asked BAYC NFT owners to be cautious of potential Twitter hackers. Additionally, Yuga Labs deleted part of the code, which would make BAYC PFPs more vulnerable to hackers. Therefore, if hackers had indeed exploited Bored Ape Yacht Club, there would have been a surplus in NFTs, leading to an even bigger crash.
Therefore, one can assume the drop in floor price is due to bear market conditions and the major crypto sell-off that occurred on June 13. Undoubtedly, this bad news highly impacted the Bored Ape Yacht Club community, especially as it already had to deal with BAYC Discord hackers earlier this month.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.