NFT prices are feeling the pinch. Nonfungible token (NFT) investors have entered what appears to be a bear market and the recent chaos is also impacting community morale.
The decline in NFT prices was caused by the increase in interest rates at the United States Federal Reserve. Terra’s LUNA , and UST platforms fell . Traders came to terms that the sector might be in a bear-market.
Things aren’t as bad as they were in 2018, but the NFT market isn’t as seasoned. Investors are already saving for future profits and strategies to survive this market downturn.
Will blue-chip tier NFTs hold the line?
Week after week, most blue-chip tier NFTs maintained their position in the top 10 in total sales volume despite some floor prices dropping nearly 25% in the last seven days.
Notably, Yuga Labs’ Otherdeed NFTs, Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) have all seen a decrease in their floor price. BAYC has seen a slight decrease of 3% in its floor price since the Otherdeed launch. MAYC has seen nearly a 13% decrease in floor price in the last seven days.
MAYC has been on quite a ride, falling drastically from its peak at 41.2 Ether (ETH) to $120,386 at the time. Currently, MAYC is valued at 19.6 Ether, an approximate 53% discount since MAYC’s pump was largely due to their eligibility to claim Yuga Labs’ Otherside’s Otherdeed NFT.
Despite all of the uproar and controversy surrounding the Otherdeed NFT drop, the project remains at the top of the charts in total volume even after a 75% drop over the last seven days.
The functionality of these digital lands is still unclear and Otherdeed has seen its floor price in a consistent downward trend. In the last seven days, the floor price decreased by 1.2%, and since minting, the price has dropped 55% from its all-time high at 7.4 Ether.
RTFKT studio’s CloneX floor price has dropped nearly 13% in the last seven days with volume decreasing slightly over 12%. These numbers don’t seem to be a problem for the community.
Despite this recent drop, the RTFKT community is still buzzing after the celebration of Takashi Murakami’s An Arrow through History exhibition in New York City. The Gagosian Gallery currently hosts the exhibit, which features CloneX-inspired pieces as well as pieces from Murakami’s first NFT collection Murakami Flowers.
Despite the cooling NFT market, the pricing seems like an enticing sale for some investors who want to profit from the news. It would turn out that Azuki NFT, the self-proclaimed blue-chip, took the largest plunge due to Zagabond, one of its founders, who openly admitted to their turbulent past of rugging the CryptoPhunks & Tendies community.
I fucked up.
After the spaces today, my mistakes in handling the previous projects that I started were revealed. To all the communities that I left, to Azuki holders and to those who believed I was capable, I am truly sorry.
— ZAGABOND.ETH (@ZAGABOND) May 11, 2022
NFT investors buy the rumors and the news
As the famous adage goes, traders “buy the rumor, sell the news,” in an attempt to maximize profits. In light of Zagabond’s admission, holders decided to vote with their assets and Azuki’s floor price dipped by 74%.
Despite this volatility, Azuki is currently at the top of OpenSea’s charts for total sales volume.
NFTs remain the Wild West. However, some investors are discovering that every investor’s barometer of morals and ethics may be slightly different. After the news sank in, Azuki’s floor price dropped precipitously but certain NFT influencers were quick to jump in and sweep the floors for potential future opportunities.
Since May 10, the Azuki floor price has steadily seen an increase above 10 Ether, an impressive 200% increase in total sales volume that occurred after fresh news circulated.
Azuki’s partner collection, BEANZ, had also taken an 83% reduction in its floor price. Even with the 248% surge in volume, BEANZ’ total sales volume has decreased by 64% in the last week.
Pre-reveal, BEANZ traded at 6.8 Ether and this price steadily descended post reveal to their current pricing at 1. 65 Ether.
Other anticipated anime-inspired drops have surfaced such as PXN: Ghost division NFT, which slid into the top of the charts on OpenSea for volume. Ragnarok Meta surged briefly in its pre-reveal stage. However, rumors that Zagabond was involved with the project seem to be weighing price.
The views and opinions expressed in this article are the author’s alone and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.