google newsNOIDA (CoinChapter.com) — Those who purchased the Bored Ape Yacht Club NFT had to face a rude awakening as BAYC lost millions of dollars to NFT investors. When you think of NFTs, the first image that comes to mind is probably the Bored Ape Yacht Club, or BAYC NFT project. The project has fallen 90% from its peak of 128 ETH.
Non-fungible tokens (NFTs) promised a digital revolution in which art and ownership would converge in unprecedented ways. Collections like BAYC's have captured both imagination and wallets, boasting impressive reviews and celebrity endorsements.
But as things calmed down, many investors, especially beginners lured by the hype, faced significant losses. As the floor price of the Bored Ape Yacht Collection NFT gradually fell, buyers entered the market to buy the dip, but ended up incurring losses.
Unlike the recent flash crash in the cryptocurrency market, the plunge in the NFT floor price was not sudden.
BAYC NFT plummets
Bored Ape Yacht Club, once a mainstay of the Ethereum NFT market, saw its price drop to rock bottom with BAYC losing millions of dollars. Recent data shows that BAYC's floor price momentarily fell below 11 Ethereum (ETH), down 12.08% in just one day and down 90% from its high of 128 ETH.
The steep decline represents the collection's lowest value since August 2021.
Even in 2024, the floor price of BAYC NFTs is down almost 58% from January 1st. By rough calculations, a drop in the NFT floor price translates into a loss worth $3.27 billion for 10,000 BAYC NFTs. Although the numbers are not exact, the calculations show the scale of losses suffered by NFT traders.
Additionally, the NFT floor price drop is not limited to BAYC. The bottom price of NFT project CryptoPunks also fell to August 2021 levels after falling more than 63% from its highest bottom price of 120 ETH.
These fluctuations illustrate the volatile nature of NFT investments, which surged during the cryptocurrency boom but then plummeted, leaving many investors with falling asset values and financial hardship.
BAYC and other NFTs have attracted many investors, mainly due to the hype surrounding the projects. However, due to falling prices, these investors are now losing millions of dollars.
But not all NFTs are dying.
Users who purchased BAYC NFTs may have had better luck using Bitcoin ordinal numbers. This project could inject some dynamism into the field, hinting at a shift in investor focus and potentially reinvigorating market interest.
Nonetheless, overall sentiment remains cautious as markets rebalance and seek new models and platforms that can deliver more sustainable growth and value retention.
Some NFT projects have begun migrating to Bitcoin to become part of the Ordinals collection, highlighting the growing popularity of blockchain as an NFT hub.
As the NFT market continues to mature, potential investors are encouraged to conduct thorough research and consider the inherent volatility before investing capital.
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