Why are NFT Prices Crashing? Azuki Plummets 11% and Bored Apes Falls 16% – Here's What You Need to Know.
The NFT market has recently witnessed a price decline, causing concern among investors and enthusiasts. Several prominent NFTs have experienced significant price declines within the past few days.
One notable example is the Bored Ape Yacht Club (BAYC), whose decline in the NFTs floor prices can be attributed to the community backlash that followed the Azuki Elementals drop last week.
The Bored Ape Yacht Club (BAYC) has encountered a loss of 11%, causing its value to drop below 30 Ether. Similarly, the Azuki collection has also witnessed a 16% dip, pushing its value below 6 Ether.
The decline in NFT liquidity has become a concerning trend in the past three months. Data from Dune Analytics reveals a significant decrease in daily trading volume, with a decline of over 50% in June alone.
This lack of interest and activity has become a challenge for the NFT industry. It has prompted prominent NFT marketplaces to employ various incentives to attract users and stimulate platform trading.
Source: Dune Analytics / hildobby
The data from Dune Analytics highlights a downward slope in daily trades over the past three months. In March, the global daily volume of NFT trades reached approximately $60 million, but by June, it had declined to an average of $20 million per day. Similarly, NFT trades decreased from around 44,000 in March to approximately 25,000 in June.
Azuki’s Community Backlash Sends Shockwaves Through the NFT Market
Last week has proven challenging for Azuki, one of the most successful NFT collections in 2023. Azuki recently held a highly anticipated Ethereum NFT drop for its new Elementals profile picture (PFP) collection on June 27.
The drop consisted of 10,000 NFTs available for purchase through a Dutch auction format, starting at 2 ETH ($3,800) per piece. The sale was an immediate success, with Azuki’s parent company, Chiru Labs, raising a staggering $38 million worth of Ethereum in just 15 minutes, as the drop quickly sold out.
However, despite this commercial triumph, Azuki has faced criticism and encountered difficulties concerning its latest NFT drop. Many enraged NFT enthusiasts have voiced their discontent, claiming that the Azuki NFT team mishandled the drop.
Furthermore, there has been a notable focus on the rise of phishing attacks associated with the Azuki name, causing additional drama on Twitter. These attacks exploit the reputation of the original blue-chip Azuki collection.
Members of the Azuki NFT community are actively seeking the attention of Elon Musk, hoping to draw his awareness to the issue and stop the influx of fake airdrops targeting Twitter’s audience. Some Azuki community members suggest implementing an auto-ban mechanism could prevent these fraudulent activities.
In terms of the new Elementals NFT collection, Azuki acknowledges that they missed the mark. However, disappointment arose among several Azuki NFT holders who felt the new collection bore too much resemblance to the earlier one. This dissatisfaction led to a significant price plunge on June 28, 2023.
According to NFT Price Floor, the floor price for Azuki NFTs stands at 5.75 Ethereum (ETH). The blue-chip Azuki collection experienced a decline to single-digit prices on June 28, with a low of 8.37 ETH recorded around the same time as the Azuki Elementals presale.
Since then, there has been a slight recovery in the floor price, with the most recent three Azuki NFTs selling for 9.11 ETH. The situation remains volatile, and how Azuki and its NFT market will fare in the coming days remains to be seen.
Bored Apes Feeling the Burn: NFT Market Downturn Takes a Toll
Bored Apes, the flagship project by NFT powerhouse Yuga Labs, is currently experiencing a price decline. The minimum price for acquiring a Bored Ape has significantly dropped, with the current minimum price being 20.1 ETH.
Regarding Bored Apes, the current market cap is $352.13K, representing a 5.65% decrease in value. The trading volume over the past 7 days stands at 19K, reflecting a decline of 26.78%. Liquidity has also dropped by 17.96% over the same period.
These statistics show the current state of the Bored Apes market and the overall decline in NFT trading activity and liquidity. The decreasing prices highlight a larger concern affecting the entire NFT market, indicating a significant reduction in trades across various platforms and a decline in overall market activity and liquidity.