The FTX exchange collapse had an impact on the NFT industry as well. So, due to the fall of cryptocurrencies’ value during the last few days, the users’ interest in the sphere noticeably decreased, and with it the market capitalization, NFT sales volume and many other indicators. Even such popular collections as Bored Ape Yacht Club did not resist under the influence of the crisis, where the minimum price fell by as much as 10%. But let’s go over everything in order, we have a lot to tell you.
The value of the most popular NFT collections decreased in a row during the week. At the time of writing, the minimum price per picture from BAYC is 60.79 ETH (~$76.5K), which is 2% lower than the day before. The main reason for this decline is the fact that the developers of the collection stored royalties on the scandalously known exchange.
Now BAYC is no longer the leader in terms of sales and market capitalization after that, losing first place first to Crypto Punks and then to Pancake Bunnies. At the time of writing, the situation has changed slightly, and BAYC has displaced Crypto Punks to the third position by market capitalization.
- Pancake Bunnies — 5,2M ETH (~$6.5B);
- Bored Ape Yacht Club — 683,4 ETH (~$860K);
- Crypto Punks — 643,4 ETH (~$810K).
As for the sales volume, this indicator dropped significantly after the situation in FTX. The first line is now taken by another Yuga Labs project called Mutant Ape Yacht Club: in the last 24 hours, the sales volume of the collection was 354.57 ETH (~$446K), while BAYC only 283.14 ETH (~$356K).
Globally, according to CryptoSlam, the ETH blockchain-based NFT market fell by 34.39%. Such a collapse shook BAYC very badly and analysts at first thought that the collection would not be able to return to its position. However, Yuga Labs later said otherwise, saying they were able to salvage the situation by transferring FTX assets to Coinbase.
How has the situation in FTX affected the market as a whole?
The problems at FTX began on November 7, and since then the NFT market has seen a significant drop in sales volume, market capitalization, the daily number of tokens traded and a reduction in the number of traders in the market. The so-called blue chips major tokens that have established themselves as pioneers in the asset class and have a solid reputation among their peers, according to NFTGo, have declined by 6% over the past week.
In addition, Dune Analytics researchers noticed that over the past four days, the number of daily transactions on marketplaces such as:
- OpenSea is down 41%;
- NFTX — by 11%;
- LooksRare — by 48%.
The number of NFT traders has also dropped by 29%, from 34,804 on November 7 to 24,559 at present.
How can I make money on this?
Given that the NFT market fell for the same reason as the cryptocurrency market, the measures you can take to enrich yourself during a crash are roughly the same. That is, keep an eye on the market, and monitor the rate of digital assets and the value of the collections you are interested in.
You don’t have to pay attention to blue chip tokens. In the top 100, you can find a lot of promising NFTs at low cost. The main thing before buying, study the market and see if the project is worth investing in and buy something from their collection. For example, you can look at similar projects to BAYC, which are often popular. Some of these include:
- Rare Apepe YC. The floor price is 0.135 ETH (~$170). Sales volume for the last 7 days increased by 0.11%;
- SUPER APE. The floor price is 23 BUSD ($23). Sales volume for the last 7 days increased by 426,95%;
- Bulls & Apes Project — Genesis. The floor price is 2.38 ETH (~$2995). Sales volume for the last 7 days increased by 2,07%;
- Prime Ape Planet. The floor price is 0.3384 ETH (~$425). Sales volume for the last 7 days increased by 20.05%.