Bored Ape Yacht Club (BAYC) NFT Floor Price Plummets by 90% Amid Bear Market Conditions
The floor price of Bored Ape Yacht Club (BAYC) non-fungible tokens (NFTs) has experienced a significant decline of 90% over the course of approximately 18 months. This drop in value can be attributed to the prevailing bear market conditions that have persisted since 2022.
The Impact on BAYC NFTs
The BAYC NFTs, which consist of a unique collection of 10,000 Bored Ape NFTs, have been heavily affected by the ongoing bear market conditions that originated last year. The floor price of BAYC NFTs, which had once reached an impressive $600,000 in 2021, has now plummeted by over 90%.
According to OpenSea, a prominent NFT marketplace, the current floor price for BAYC stands at 36.5 ETH, reflecting a slight increase from the 27.6 ETH recorded in early July when it reached its yearly low. Bear markets have a significant impact on various digital assets, including NFTs. During these periods, market participants tend to sell their holdings due to fear, uncertainty, and doubt (FUD). Consequently, this diminishes overall buying power and significantly influences market sentiment.
The Ripple Effect on the Market
It is worth noting that bear markets affect not only BAYC but also other digital assets, such as flagship cryptocurrencies like Bitcoin. The price of Bitcoin, for instance, experienced a drastic plunge from over $69,000 in November 2021 to less than $16,000 a year later in 2022.
The extent to which asset prices decline during bear markets varies depending on liquidity and market sentiment. Assets that heavily rely on hype rather than practical usage tend to witness more significant price drops, as investors seek safer assets with tangible benefits.
For instance, while BAYC’s floor prices experienced a rapid decrease and some altcoins lost value, the decline in Bitcoin and Ethereum (ETH) prices was relatively less severe.
Factors Aggravating the Decline
As of May 1, the floor prices for BAYC NFTs had already dropped by 60%, settling at $382,000. Despite a slight increase in the number of unique buyers, the average floor price remained lower. Additionally, trading volume on the OpenSea NFT marketplace has decreased by 40%.
The decline in BAYC NFTs floor prices was further intensified by the actions of Jeffrey Huang, also known as Machi Big Brother, an NFT collector. Huang’s decision to sell over 50 BAYCs within a few days, including a single transaction where he sold 19 Apes for 651 ETH (equivalent to approximately $1.2 million), played a significant role in pushing the BAYC collection to its lowest price point since November 2021.
In December 2022, a group of BAYC holders filed a lawsuit against Yuga Labs, alleging that the company had made false or misleading statements about the project. Separately, a court in the United Kingdom ruled that BAYC NFTs did not fall under the legal definition of “collectibles” according to UK law.
The Bored Ape Yacht Club (BAYC) NFTs have experienced a substantial decline in floor prices due to the prevailing bear market conditions. The decrease can be attributed to factors such as fear, uncertainty, and doubt among market participants, as well as the actions of prominent collectors and legal disputes. As the market navigates these challenges, it remains to be seen how BAYC NFTs and the broader NFT scene will recover and adapt to changing circumstances.