Crypto market downturn leads to sharp drop in top-tier Ethereum NFTs

  • With lower ETH prices, the floor prices of blue chip NFT collections are going down
  • NFT trading volumes have also fallen to their lowest monthly levels

The current bearish trend in cryptocurrencies has seen prices plummet across the board, and with the value of cryptocurrencies falling, NFTs in dollar terms have also declined in recent weeks.

Ethereum (ETH), the NFT market leader, is trading around $2,000 at press time, down from $2,800 a week ago. Terra’s stablecoin, TerraUSD (UST), and its native token, LUNA, crashed in recent days, losing more than 99%.

While UST has unlinked from its one-for-one tandem with the US dollar and is trading at $0.13, LUNA hovered around $0.0000914 on Friday afternoon.

Meanwhile, NFTs created on Terra marked record levels of trading activity on May 11 that have since subsided.

Lower Ether prices, on the other hand, have caused a persistent drop in ETH NFT price floors, along with lower gas fees (boosting transactions on the ethereum blockchain).

Top-tier projects like Bored Ape Yacht Club (BAYC) and CryptoPunks have been no exception. Bored Ape Yacht Club collectible trading on OpenSea fell to its lowest point in the past month, down 63% on May 12 over a seven-day period.

While the daily sales range has fluctuated between eight and 67 NFT on any given day since early May, the collection floor price has had a more consistent impact.

It fell to 89 ETH ($169,792) on May 12 and rose again to 99 ETH on Friday as markets showed signs of stabilization. The BAYC price floor hit a high of 152 ETH and nearly crashed the Ethereum network on the eve of the debut of Yuga Labs’ Otherdeed for Otherside collection in early May.

Otherdeed NFTs, required to purchase land in the Otherside metaverse, remain in the top 10 collections with the highest trading volume since their debut on OpenSea. In that sense, it sits alongside other collections from its parent company, such as BAYC and Mutant Ape Yacht Club.

Otherdeed for Otherside’s transactions have dropped dramatically since its launch, from $375 million in volume to $6.5 million, according to NFTGo. Still, the collection has seen some of the highest-priced NFTs this week, according to NonFungible.com.

Otherdeed for Otherside #59906 sold for 625 ETH, equivalent to $1.6 million.

Other NFT collections that continue to top the charts this past week include the Art Blocks, Doodles, Moonbirds, and Azuki and Beanz collections, even after its founder revealed that it was part of three previously failed NFT projects.

Market conditions have also prompted some NFT investors to try to liquidate their holdings, amid considerable losses.

In other NFT news, Meta began testing an NFT viewing feature for a select group of Instagram creators and collectors earlier this week. Once the feature is publicly available, it could potentially affect the large NFT market.


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  • ornella hernandez

    blocks

    Reporter

    Ornella is a Miami-based multimedia journalist who covers NFT, the metaverse, and DeFi. Before joining Blockworks, she reported for Cointelegraph and also worked for TV channels like CNBC and Telemundo. She originally started investing in Ethereum after learning about it from her father and she hasn’t looked back since. She speaks English, Spanish, French and Italian.

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