What impact does the FTX collapse have on the NFT marketplace?
In Brief
The fall of FTX has sent shockwaves throughout the cryptocurrency sphere, directly impacting the value of NFTs.
Recent statistics indicate that NFT owners are increasingly offloading their digital assets.
The cryptocurrency market has been on a downward trend for some time, dragging NFTs down in the process. However, the bankruptcy of one of the most prominent crypto exchanges has created an even harsher market environment. Bitcoin recently plummeted to its lowest level since November 2020, dropping below $16,500. Ethereum now sits at $1,227, reflecting a 21.8% decrease in just a week. Solana, highly regarded in the NFT community, has suffered a staggering 50% decrease, now trading at a mere $16.47. FTX The FTX crisis news broke on Tuesday, November 8, culminating in their bankruptcy declaration today. This marks one of the largest collapses in the industry, leading to a broader mistrust of remaining crypto platforms and resulting in many digital asset holders opting to liquidate either their cryptocurrencies or NFTs. Reports from NFTStatistics and analyst Salil Sethi corroborate this trend:
Currently, the ratio of wrapped Ether (wETH) across NFT marketplaces stands at 40%. crypto companies Generally, this figure hovers around 15% to 20%.
The current floor price for Bored Ape Yacht Club NFTs is at 58.4 ETH, translating to about $73,617. Back in April, the same floor price peaked at 152 ETH, equivalent to approximately $430,000 at that time. In just six months, the price for one of the leading NFT collections has dramatically decreased by nearly 83%.
On average, the floor prices for different NFT collections have remained quite stable without any significant fluctuations apparent in recent data. His collection However, OpenSea indicates notable variations in the 24-hour sales figures:
Otherdeed for Otherside dropped by 29%;
LetsWalk (deekaymotion) skyrocketed by an astonishing 10,250%.
With the falling crypto prices, NFTs are becoming more affordable. Nonetheless, potential buyers remain hesitant, fearing further market declines. Additionally, current NFT holders are reluctant to part with their assets at a loss. The market situation is rather ambiguous right now, leaving many unsure if it’s the right moment to invest in high-value NFTs at such dramatically reduced prices.
- CryptoPunks decreased by 67%;
- MAYC decreased by 33%;
- Bankruptcy court allows Voyager clients to access $270 million in funds.
- CloneX decreased by 27%;
- Moonbirds decreased by 50%;
- Doodles decreased by 31%;
- Cool Cats decreased by 30%;
- Pudgy Penguins decreased by 55%;
- Azuki increased by 86%;
- KPR increased by 687%;
- Facing potential bankruptcy, Three Arrows Capital is believed to possess $7.5 million in NFTs.
Crypto exchange FTX collaborates with Visa to launch debit cards in over 40 nations.
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