The current cryptocurrency market remains in a state of chaos. The liquidations are over $200 million on a daily scale again as Bitcoin headed towards the $20k mark. Ethereum, the second-largest coin suffered the same fate. But it looks like investors are buying the dip.
And no, it’s not Bitcoin or altcoins- instead investors leveraged this opportunity to buy NFTs.
Wasting no time
Given the market crash, many NFT projects have suffered a significant decline in price. Popular collections such as the revered Bored Ape Yacht Club (BAYC) were not spared either, and their floor prices have lost significant value in US dollars. BAYC dropped by -49% at press time.
Other projects suffered as well- at press time, CloneX was at -57%, Meebits at -54%, and Azuki at -49%. But according to NFTGO, in the past week, more than 85% of the high-priced NFT transactions came from BAYC. Thus, indicating that investors tried to buy BAYC in a bear market.
Source: NFTGO
Well, the steep decline in floor price also helped investors to buy it cheaper. According to data from NFT price floor, the floor price of Bored Apes has dropped below $100,000 for the first time in almost a year.
At the time of writing, the BAYC was priced at $85,500, representing a 65% drop from the all-time high.
Source: NFTpricefloor.com
The last time an Ape was traded around this price range was in January 2022. To add further, the volume of NFT trades has increased over the last 24 hours as crypto-markets plummeted.
According to CryptoSlam, the NFT market saw a 40% increase in trading volume in the last 24 hours, compared to the previous 24-hour window. Other projects, such as MAYC, and Moonbirds went down the line.
But the rise in volume saw investors capitalizing on the opportunity. For instance, Twitter user CryptoDonAlt remained upbeat on his BAYC losses, choosing, instead, to focus on the positive.
Moreover, according to DappRadar statistics, the NFT market hit $25 billion in trade volume in 2021. It is observed that it is on track to surpass that figure this year. According to the Nansen 2022 quarterly report, the NFT market outperformed the broader cryptocurrency market year-to-date, as evidenced by the NFT-500 Index’s price appreciation of 49.9% so far in 2022.
