NFT marketplace shows signs of recovery even though Bored Ape prices are down
A study shows that the NFT marketplace is set to hit over a whopping $230 billion in value by 2030
By Shashank Bhardwaj
The Ethereum floor price of the Bored Ape Yacht Club (BAYC) NFT collection was reported to have dropped to its lowest level since the beginning of the year on August 20. It occurred in the midst of a continuing NFT market slump and a broader crypto market crash. And the Bored Ape Yacht Club has suffered a significant setback. This year, its floor prices fell below $100,000. Since reaching an all-time high of 153.7 ETH on May 1, the NFT project has been on a downward trend. In August, BAYC fell to 69.69 ETH. In three months, the price had dropped by nearly 55 per cent. Notably, the floor price of an NFT collection is important in determining the health factor.
Crypto market conditions have deteriorated since the beginning of this year. Scams and hacks have been common. In addition, the number of low-quality projects is increasing. All of these factors have led many to question the utility of NFTs and their potential roles in Web3. Market conditions are also linked to ecosystem developments. These include rampant fraud and content oversaturation. It caused increased concern among those already involved in the space, as well as hesitation among consumers and businesses looking to enter the space.
BAYC is not the only one suffering in this scenario. OpenSea, the most popular NFT marketplace, has dropped 99 per cent in less than four months. OpenSea processed a record $2.7 billion in NFT transactions on May 1. However, on August 28, Sunday, the marketplace only recorded $9.34 million in value. CryptoPunks, another popular NFT collection, is down 19 per cent from its July high. Despite this, there is still hope for the NFT market to retaliate. According to a spokesperson of OpenSea,
"We always expected frothiness, hype, and deflation as the community and use cases evolve, the tech gets more sophisticated, and creators figure out how to build more utility into their projects."
It is high time to put infrastructure and security partners first. Only then can the NFT market be long-term successful and avoid future financial losses. Marketplaces must take steps to better align with evolving copyright and intellectual property standards. Furthermore, companies and projects must consider how to protect users internally. They must take advantage of open-source technology and create their own security features. Marketplaces must also begin curating artwork. This ensures that the highest quality pieces are not drowned out by a large number of NFTs. This will also aid in the identification of duplicates.
On August 29, it was reported that, prior to the launch of the y00ts NFT project on Solana, the prices for the team's current NFT collection, DeGods, reached new highs over the weekend. And, in terms of trading volume, DeGods has surpassed all NFT projects in the last 24 hours. As a result, it is clear that the NFT market has not been completely destroyed. Furthermore, according to a recent study, the Metaverse has the potential to grow to $5 trillion in value by 2030. And it is well known that NFTs are a key component of the Metaverse. In this context, it is predicted that the NFT market will be worth more than $230 billion by 2030.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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