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With the drop in Blue chip NFTs based on ethereum networks and others, the concerns are that digital art is quite dependent upon market movement
The current downtrend seen in the cryptocurrency market where the prices have plugged across the market and with the cryptocurrencies’ value is falling, so will the non fungible tokens in terms of the dollar have declined over the period of last week. The leader of the NFT market, Ethereum (ETH), is currently trading below $2,000 while. The time of writing is down from its price of $2,800 a week ago. UST stablecoin of Terra network and its native token LUNA collapsed recently while ending losing upto more than 99%.
While UST got de-pegged one to one with the US dollar and dropped to $0.13, LUNA has dropped by about $0.0000914. However, by the time of writing, both crypto assets have seen massive growth but still remain far behind their actual position. Non Fungible tokens that are built on the Terra network in the meantime have reached record trading levels on 11th May that have been facing a decline since then.
On the other hand, the lower price of Ether has caused surviving drop-in floor prices of ETH NFTs along with such low gas fees that get powered by the transactions made on the ethereum blockchain. Several Blue chip projects on the Ethereum network, including Bored Ape Yacht Club (BAYC) and CryptoPunks, have also seen similar situations where the trading volume of BAYC collectibles on NFT marketplace OpenSea has seen a fall to its lowest in the past month after the drop of about 63% on 12th May over a time of seven days.
While the daily sales range has been fluctuating from eight to 67 NFTs every other day since the beginning of this month, the floor price of the collection has also taken a consistent hit. On 12th May, it dropped to approximately 89 ETH, which is about $169,792 on the same day. It went up back to 99 ETH on Friday as the market started showing the signals of getting stable.
The floor price of BAYC has peaked upto 152 ETH, and it almost hot crashed the Ethereum network on the debut occasion of Otherdeed NFT for Otherside collection from Yuga Labs in early May. Otherdeed NFTs required to purchase digital land in the metaverse of Otherside that remained under the top 10 collections while having the highest trading volume from the debut on OpenSea NFT marketplace.
ALSO READ: LUNA-based ETPs Face Difficulty In Trading As Terra Network Suffer Halts
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
