In the turbulent waters of the crytocurrency world, a not-so-surprising wave seems to be engulfing well-renowned, non-fungible tokens (NFTs). A noticeable decline in their floor prices, surpassing a 25% descent in the last month, was recently reported by Nansen.ai. NFTs prove their worth by providing ownership rights over various types of assets, both tangible and digital. The term ‘floor price’ within NFT parlance refers to the lowest acceptable selling price of a collection item, a subtle gauge of its popularity and perceived value.
However, this yardstick has its vulnerabilities. It is susceptible to manipulation and hence, may not always mirror the authentic market value of an NFT. Various convoluted factors such as rarity traits and current market conditions relentlessly stir the price bucket. Speaking of numbers, we have the floor prices of certain popular collections like Bored Ape Yacht Club and DeGods plunging by 27% and 55% respectively. Azuki, highly celebrated for minting ‘Elementals’ NFT in a mere 15 minutes in June and accumulating a whopping $38 million, beheld a fall in its floor prices by 36%.
Arguably, cryptocurrency prices, like Ethereum, often steer the value course of NFTs. However, in an interesting twist of events, NFT values are spiralling downwards quicker than the currency for which they are typically exchanged. Ethereum has suffered a relatively moderate decline of 9.6% on-month, but has managed to stay in the green for the past year, with a 1.9% rise, according to Coindesk Indices data.
Yet it wouldn’t be fair to paint the entire NFT market in shades of declination. The other end of the spectrum beams with some lesser-known collections enjoying decent gains. As per Nansen.ai, Miladays’ floor price escalated by 66%, closing in on Mutant Ape Yacht Club. Adding to the mix is Sproto Gremlins, significantly popular amongst Bitcoin HODLers, that bolstered a phenomenal surge, tallying at a 262% increase over the past 30 days.
In the constantly shifting terrain of NFTs and cryptocurrency, it’s the law of the jungle – only the adaptable survive. Market views remain polarized, weighing the tremulous bearish trends against the bullish expectations of the lesser-knowns breaking through. Whatever the case may be, dry spells or rainfalls, it seems the NFT market is just getting warmed up.