NFT prices crumble as crypto market enters downturn

Quick Take

  • NFT prices and sales volumes are falling amid a rout in crypto markets.
  • CryptoPunks and Bored Ape Yacht Club collections have seen their floor price plunge.

Prices of non-fungible tokens (NFTs) have declined this week as the TerraUSD (UST) algorithmic stablecoin's de-pegging heaps pressure on cryptocurrency markets. 

The popular Bored Ape Yacht Club (BAYC) has seen its floor price — a measure of the cheapest NFT in the collection – drop by 25% over the past week to 88 ETH ($1.7 million), according to data compiled by The Block. CryptoPunks' floor price is down 15% to 52.5 ETH over the same period. 

The entire crypto market has seen a weakening in sentiment this week as the TerraUSD (UST) algorithmic stablecoin lost its peg to the dollar on Monday. Bitcoin is now trading below $30,000 while ether has fallen below $2,000 and other tokens have also come under pressure. 

The declining price of ether means that NFT investors have seen the value of their holdings fall even further in dollar terms. 

The price declines have coincided with decreasing liquidity in NFT markets. Global sales volumes are down by 41% over the past 24 hours, according to CryptoSlam data.

The losses in the NFT market aren’t limited to Ethereum projects as sales volumes of Solana NFTs have also fallen off significantly over the past few days. Solana sales volumes are down 21% over the past 24 hours, according to CryptoSlam data.

Okay Bears, one of the largest collections on Solana, has seen its sales volume drop by 19%.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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May 5, 2022, 3:17PM UTC