NFT is no longer a “promised land”?

By the end of 2021, GameFi and NFT were hot-hit keywords in the market at that time. However, as crypto gradually cooled down, NFT was also unable to keep its flame, and a series of hacks and related FUDs caused many losses for investors.

Bored Ape Yacht Club’s NFT sale of Otherside lands brought down Etherscan

Although they knew in advance about the hotness of the Otherside land NFT sale, few could think that it could have such a serious impact on the Ethereum network.

With the hotness of this sale event, not only from the name of Bored Ape Yacht Club but also because of the return of a series of projects in the past time such as Ethereum Name Service (ENS) or Moonbirds, it is not difficult to predict that Ethereum gas fees will be pushed up a lot during the opening period.

As expected, ETH gas fees from an average of 60-100 gwei during almost a day before the launch of Otherside jumped to 8,166 gwei.

The sale even caused the popular Ethereum block explorer website Etherscan to crash, which is very rare.

Many Ethereum users have had to complain about having to pay much higher transaction fees than usual, and Otherdeed buyers are sure to have to spend a lot of money on gas to ensure their mint transaction goes through.

Okay Bears is open for sale as blockchain Solana “stands still” for 8.5 hours

At around 4:00 a.m. on May 1, blockchain user Solana suddenly found itself unable to make transactions through the world’s sixth largest cryptocurrency network.

After that, Solana’s crash site Solana Status confirmed that the entire blockchain was down, unable to continue producing blocks.

The cause of the problem was because a huge amount of transactions, up to 4 million transactions/second, was pushed onto the network and caused an overload. Solana’s engineering team has since been unable to relaunch the blockchain.

The above transaction volume comes from bots created to participate in NFT sales on Solana, which has been resurgent since the market leading marketplace platform OpenSea announced NFT support on Solana last year early April.

Okay Bears is topping the OpenSea leaderboard with a 7 day trading volume of over 557,000 SOL (over $50 million).

The founder was “unmasked” with a dark past, causing the price of NFT to plummet

Azuki

The NFT Azuki floor price dropped sharply after the founder confessed to having “abandoned” 3 other projects. The NFT investment community on the morning of May 10 was extremely surprised by the “confession” of the founder of the cult collection Azuki.

In a series of posts on the morning of May 10, Azuki’s anonymous founder Zagabond revealed that he was also involved in Cryptophunks, Tendies and Cryptozunks, 3 NFT projects that were “abandoned” by the management team in 2021 after failing to achieve the expected success.

After the news, the floor price of Azuki was also seriously affected in the morning of May 10, dropping by nearly 33%.

After the negative reaction from the NFT community about his disclosure, Zagabond on the morning of May 11 apologized for his statements and promised to transfer the management of smart contracts of 3 old projects to the community. copper.

Even so, the Azuki price is still falling sharply and has bottomed out at 10 ETH on the morning of May 11th.

Milady

After Azuki, it was the turn of another emerging NFT project called Milady that was turned away by the community because of controversy about the founder.

The information that has been stirred up by the NFT investment community on Ethereum in the past few days is that the founder of the NFT project Milady, Charlotte Fang, admitted to having a “dark past”, having joined the suicide support group on 4chan, the group advocates white supremacy and anorexia nervosa.

Even so, that still wasn’t enough to make the investment community “boycott” Milady. From a peak of 1.59 ETH on May 20, the NFT Milady floor price is now only 0.31 ETH, down nearly 80% in less than 7 days.

There are also some theories that projects are “borrowing the wind to break” the downfall of the cryptocurrency market, launching FUD to make the NFT price fall and thereby “bottoming” the NFTs to serve the investors future plans and “blow the price” up again.

 Floor prices of many leading NFT projects plummeted

The NFT floor price has not been able to continue to “reverse the storm” in the current crypto market context. Among the ranks of the NFT collections of the era, there are projects that have experienced a decline of up to 55%.

According to data from NFT Price Floor:

– CryptoPunks – 33% off from $84,800 to $56,700.

– Bored Ape Yatch Club – 45.3% down from $164,200 to $89,800. Less than two months ago, on April 29, the Bored Ape floor price reached an all-time high of more than $430,000. However, the above damage is also insignificant if we measure the price in ETH, in the past 24 hours, BAYC only decreased about 7.25%.

– Mutant Ape Yatch Club – 49% off from $33,600 to $17,000.

– Azuki – down 31% from $18,900 to $13,000.

– Doodles – 55% off from $21,400 to $9,600.

– Cool Cats – 49% off from $7,000 to $3,600.

As of June 15, the NFT transaction volume on major marketplaces in June 2022 has reached just over half a billion USD, only 1/8 of the 4 billion USD in May and 1/33 times the record $16.75 billion in January of the year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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