The revelation of FTX's limited liquidity and alleged misuse of consumer cash has the cryptocurrency industry in a state of upheaval.
The NFT market has been shaken by this crisis, which has caused panicked selling of NFTs. The "floor price" of Bored Ape Yacht Club NFTs has substantially decreased as the FTX fiasco drags on and investors remain unsure about the future of cryptocurrency exchange.
The cheapest Bored Ape Yacht Club NFT on the market as of this writing is priced for 56.37 ETH, or around $72,035. This is a 7% decrease in ETH during the previous 24 hours. But given that ETH's value is falling (down 13% this week), it has dropped by around 24% in USD during the last day.
Since reaching a high of almost $429,000 (152 ETH) on April 29 of this year, the price of a Bored Ape NFTs (in USD) has decreased dramatically. It is an 82% decrease.
Reason for the Price Plummet
There are a few reasonable reasons why Bored Ape's price is falling this week. One factor is the general fear in the crypto market following the FTX meltdown. Some investors may feel pressured to sell their "blue chip" NFT assets as a result. Surprisingly, there is on-chain proof that this behavior exists.
WETH trades as a percentage of total OpenSea volume is above 50% for the first time today. The chart below is pretty wild.
— NFTstatistics.eth (@punk9059) November 9, 2022
Everyone accepting the bids that are out there.
This is up from 40% when I tweeted this chart earlier. pic.twitter.com/5Zo66UPLfF
More and more NFT owners are settling for offers below the going rate. This suggests that in the midst of the market's turbulence, sellers are attempting to quickly get rid of their NFTs.
BendDAO is another element that is causing the collapse of the cryptocurrency market. It is a lending platform that enables users to obtain cryptocurrency loans using their NFTs as security. 14 Bored Ape NFTs from liquidated loans are being auctioned off by BendDAO at prices that are all far below the market floor price on the largest marketplace platforms. This demonstrates a lackluster demand for the assets.
Back in August, when it ran out of ETH, BendDAO experienced severe liquidity issues. also failed to draw sufficient interest in the NFTs seized from settled debts. Participants in the protocol decided to lower the liquidation barrier, which will make it easier for BendDAO to sell off NFTs to pay off submerged debt.
