In the ever-evolving world of cryptocurrencies and blockchain technology, Non-Fungible Tokens (NFTs) have emerged as a revolutionary asset class. However, like all markets, the NFT space is not immune to cycles of boom and bust.
Currently, we’re witnessing a bearish trend in the NFT market, particularly with some of the most renowned projects. But is this downturn a signal for potential investors to acquire blue-chip NFTs? Let’s delve into the numbers and facts.
NFT Market Overview
The NFT market is a dynamic ecosystem, with various metrics providing insights into its health, trends, and potential future movements. Here’s an analysis of the recent “Barometer” data & Blue Chip Index by NFTGo:
1. NFT Market Sentiment
The Market Sentiment Index is an experimental metric that offers a holistic view of the NFT market’s mood. It amalgamates various factors, including volatility, trading volume, social media buzz, and Google trends.
Updated hourly, the current score stands at a chilly 11 out of 100, indicating a cold sentiment. This suggests caution, as the market might be experiencing a period of uncertainty or bearish tendencies.
2. 24-Hour Traders Activity
Over the past 24 hours, the market has seen 4,351 buyers and 3,989 sellers. This data provides a snapshot of the market’s liquidity and activity.
The fact that there are more buyers than sellers could be interpreted as a positive sign, indicating a potential uptick in demand. However, the difference between buyers and sellers isn’t vast, suggesting a relatively balanced market.
3. 30-Day Profit and Loss
A crucial metric to gauge the market’s profitability is the 30-day Profit & Loss. This metric combines both realized profits from sales over the past month and the unrealized profits of NFTs currently held by each address.
The data paints a concerning picture: 39,575 addresses have seen profits of more than 1 ETH, while a staggering 455,849 addresses have experienced losses exceeding 1 ETH. This significant disparity between profit and loss indicates that a large portion of the market participants might be in a negative position, which could be a result of the broader bearish trend in the NFT space.
4. Blue Chip Index
The Blue Chip Index measures the performance of elite NFT collections by weighting their market capitalization (in ETH/USD). The index offers a snapshot of the health of the market’s top-tier NFTs. The weighted market cap as of today is $3,032 – down from $3,581 30 days ago.
Notable Blue Chip NFTs
These collections are not just digital art or mere tokens; they represent a confluence of community engagement, innovative design, and significant investment interest. Often setting trends and benchmarks in the NFT arena, these blue-chip projects serve as both a testament to the potential of NFTs and a beacon for new entrants looking to understand the market’s pinnacle.
Below, we feature some of these standout projects, highlighting their unique attributes and market performance.
Bored Ape Yacht Club (BAYC)
BAYC, one of the most prestigious NFT projects, has seen a significant drop in its floor price. As of now, the BAYC price floor stands at $46,658, with a 24-hour sales volume of 440.67 ETH. Despite this drop, the community remains active, with 9,998 NFTs minted and held by 5,561 unique owners.
A recent article from CoinMarketCap highlighted that BAYC’s floor price has plummeted over 76% from its all-time high. Factors such as general market pessimism, decreased media attention, and high-profile sales by collector Jeffrey Huang have contributed to this decline. However, despite the bearish trend, BAYC’s community and trading activities remain robust, indicating a strong foundation.
Azuki, another prominent NFT project, has also experienced a decline in its floor price. Currently, the Azuki floor price is 4.45070 ETH, equivalent to $7,570.87, marking a decrease of 2.1%. The market cap for Azuki stands at 44,507 ETH or approximately $75,708,722. Over the past 60 days, Azuki has seen a decline of 40.5% in its value. However, the community and trading activities remain vibrant.
In the last 7 days, Azuki NFTs were sold 253 times, with a total sales volume of $1.79M. The average price for an Azuki NFT over this period was $7.1k. The current floor price, as per NFT Stats, is Ξ4.21. With 4,292 unique owners and a total supply of 10,000 tokens, Azuki remains a significant player in the NFT space. Notably, a rare Azuki NFT was sold for over 420.7 ETH, equivalent to approximately $1.4 million USD, marking the highest price recorded for the collection, as reported by Hypebeast.
Clone X, a collaboration between RTFKT and renowned artist Takashi Murakami, has also seen a decline in its floor price.
As of now, the Clone X floor price stands at $3,185.89, with a 24-hour sales volume of 17.29 ETH. The project has a total of 19,501 NFTs minted, held by 9,471 unique owners, and boasts a total market cap of $62,127,957. Despite a decrease of 74.7% from its all-time high, the project remains strong. In January 2022, Clone X engaged more than 2,700 buyers, leading to a staggering $165 million in sales volume, as reported by InsideBitcoins.
The collaboration with Takashi Murakami brought traditional art tonality to the digital collectibles, making them distinctive and popular.
Moonbirds, a collection of 10,000 utility-enabled PFPs, has witnessed a decline in its floor price. The current Moonbirds floor price is $2,109.34, with a 24-hour sales volume of 43.69 ETH. The project has a total of 10,000 NFTs minted, held by 6,343 unique owners, and boasts a total market cap of $21,093,394.
Despite the bearish trend, Moonbirds has made headlines for its rapid success. The collection, which features digital art of cartoon owls, quickly sold out during its fixed-price drop.
The project’s success can be attributed to the people behind it, including the Proof Collective, a group of 1,000 NFT collectors. Notable members include artist Mike Winkelmann (Beeple) and investor Gary Vaynerchuk. However, the Moonbirds drop was not without controversy, with accusations of bots manipulating the raffle and concerns about the project’s leaders using inside knowledge to buy Moonbirds with rare traits. Despite these challenges,
Moonbirds remains a significant player in the NFT space, with holders able to “nest” their NFTs to accrue additional benefits over time, as mentioned on Fortune.
Doodles, a collection of 10,000 generative NFTs, has seen its floor price decrease to 1.57000 ETH or $2,944.81. With a market cap of 15,698 ETH or approximately $29,445,172, Doodles remains a significant player in the NFT space. In April 2022, Doodles reached an all-time high floor price of 17 ETH, equivalent to around $50,000, as reported by Business 2 Community.
Despite the decline from its peak, Doodles has maintained its status as one of the most influential and beloved NFT endeavors. The collection, which features colorful line-drawn characters, has been recognized for its unique token mechanics, high-profile collaborations, and community-driven initiatives.
The Doodles ecosystem is essentially a DAO, where every Doodles owner has a say in the project’s direction. This community-centric approach has been a cornerstone of Doodles’ success, as highlighted by NFT Now.
Cool Cats, a collection of 9,999 uniquely generated NFTs, has experienced a significant decrease in its floor price. Currently, the Cool Cats floor price is 0.61000 ETH, equivalent to approximately $1,142. Last October, the Cool Cats NFT collection was one of the most sought-after, with the average price of a single cartoon cat avatar reaching a staggering $92,000. However, this month, the price of a Cool Cats NFT plummeted to a low of just 2.85 ETH, or roughly $3,556, a price range not seen since August 2021, as reported by Decrypt.
Despite the decline, Cool Cats remains a significant player in the NFT space. The project has been recognized for its unique token mechanics, high-profile collaborations, and community-driven initiatives. Notably, celebrities such as Mike Tyson, Reese Witherspoon, and DJ Steve Aoki have shown support for Cool Cats, further solidifying its place in the NFT community.
Pudgy Penguins, a collection of 8,888 uniquely generated NFTs, has seen its floor price drop to $6,979.21. Despite the decline, the project has a total market cap of $62,031,215 and remains a significant player in the NFT space. The collection has been recognized for its unique token mechanics, high-profile collaborations, and community-driven initiatives.
Notably, Pudgy Penguins NFTs broke all-time highs during a holiday rally, with the Ethereum-based NFT lineup eclipsing other blue-chip digital collectibles in 24-hour trading volume. At one point, the lowest asking price for a “Pengu” on NFT trading hub OpenSea was 7 ETH, marking a 32% jump in 24 hours, as reported by CoinDesk. The project’s success can be attributed to its active founder and the support of several influencers.
Moreover, the Pudgy Penguins collection has seen a revival under new ownership, with the rights being bought by serial entrepreneur Luca Schnetzler for $2.5 million. He has since rolled out Pengu licensing deals, a collection marketplace, and a social media campaign to break into blue-chip territory.
The NFT market, like all markets, is cyclical. While blue-chip NFTs like BAYC, Azuki, CloneX, Moonbirds, Doodles, Cool Cats, and Pudgy Penguins have seen a decline from their all-time highs, their communities and trading activities remain robust. This bearish trend might be an opportunity for potential investors to acquire these blue-chip NFTs at a discount. However, as with all investments, it’s essential to conduct thorough research and understand the risks involved.
The resilience of these projects, even in a bear market, is a testament to their strong foundations, active communities, and the potential of NFTs as a revolutionary asset class. As the NFT space continues to evolve, it will be interesting to see how these blue-chip projects adapt and innovate to maintain their relevance and value.