The dramatic decline in Bored Ape NFT prices, plummeting by a staggering 90% from their peak of 120 ETH to a mere 10 ETH at present, reflects a seismic shift in the NFT market landscape.
During the frenzied cryptocurrency bull run of 2021, the Bored Apes Yacht Club (BAYC) NFTs emerged as one of the most coveted collections, riding high on a wave of enthusiastic demand. However, this meteoric rise was not sustained, as the NFT market at large experienced a significant downturn in demand.
Despite an initial surge fueled by hype and celebrity endorsements, BAYC NFTs and other Ethereum-based NFT collections found themselves grappling with dwindling retail interest and the emergence of new collections on alternative blockchain platforms such as Bitcoin and Solana.
At the peak of their value in May 2022, each BAYC NFT commanded a price tag of $400,000 in Ether, with Ether trading at $3,000. Fast forward to the present, and the value of each Bored Ape NFT has plummeted to just over $30,000, marking a precipitous decline in valuation.
Compounding this decline, data from CoinGecko reveals a notable stability around the $1 million mark in 2022, with a striking concentration of wealth in the hands of a few. Specifically, ten individual wallets collectively held nearly 20% of the total value of BAYC NFTs, underscoring the unequal distribution of wealth within the NFT ecosystem.
This sharp reversal in fortune for Bored Ape NFTs underscores the inherent volatility and speculative nature of the NFT market. While the initial surge in value may have been driven by hype and speculation, the subsequent downturn serves as a sobering reminder of the risks inherent in investing in digital assets, and prompts speculation about the long-term viability and sustainability of NFTs as a store of value.
According to Google search data, interest among retail investors in Ethereum-based NFT collections appears to be diminishing, with a noticeable shift towards NFTs on the Solana and Bitcoin blockchains.
The ascent and descent to levels reminiscent of August 2022.
In the buoyant market of 2021, Bored Apes Yacht Club (BAYC) NFTs swiftly captured the attention of enthusiasts, propelled by a wave of fervent interest that saw these digital assets commanding astronomical prices. The allure of BAYC NFTs was such that numerous celebrities boasted of their acquisitions, with some claiming to have splurged over $300,000 for a single NFT. Notably, Justin Bieber himself purportedly acquired a “rare” Bored Ape NFT, reportedly shelling out a staggering $1.2 million for this digital collectible.
Amidst this frenzy, speculation abounded regarding the involvement of Moonpay, a prominent payment service provider, in bolstering investor confidence by gifting Bored Ape NFTs to select individuals and celebrities. These purported gifts, as indicated by reports from Google, served to further stoke interest and enthusiasm surrounding the BAYC collection.
Despite the subsequent downturn in NFT prices, BAYC has managed to retain its status as a preeminent collection within the NFT space, boasting a formidable market capitalization of $340 million as of recent figures.
At its core, Bored Apes is a collection comprising 10,000 distinct digital monkey cartoon characters, each uniquely rendered and stored on the Ethereum blockchain. However, owning a BAYC NFT entails more than mere ownership of a digital asset; it confers certain privileges and benefits upon holders. These perks may include exclusive access to in-person events or membership in a private online club. Moreover, owning a Bored Ape NFT serves as a conspicuous symbol of wealth and status in the online realm, further adding to its appeal and desirability among collectors and enthusiasts alike.
READ MORE ABOUT: Crypto Controversy: Founder of Remilia Alleges Hacking Amid Ether and NFT Transactions
