The investor who bought CryptoPunk #273 sold it for about $139,000, a massive 80 percent loss, little under 7 months after purchasing it for $1 million.
In general, eight of the previous ten CryptoPunks sales resulted in a loss. Are these indications truly concerning for the project’s future, or are they merely a phase?
Overall, the NFT market is down.
While the price of CryptoPunks has undoubtedly dropped, given that it is a flagship project, it is also indicative of a general reduction in the price of NFT ventures.
Indeed, CryptoPunks is far from the only project whose floor price has fallen drastically in recent days. Doodles, Bored Ape Yacht Club, and other lower but extremely serious floor price projects like Alien Frens… have have had their floor price drop more or less significantly in recent months.
A fall caused by falling cryptos?
One of the most often debated ideas behind the general drop in the price of NFTs is that it is strongly related to the negative time that cryptocurrencies are now experiencing.
Because Ethereum is the primary way of purchase for NFTs, there is a direct association between cryptocurrencies and NFTs.
As a result, a steep loss in ETH might cause rapid panic on the NFT side, resulting in an even larger decline in both ETH and USD.
Is it the end of the CryptoPunks?
Many people are wondering if these drops mean the death of NFTs and flagship projects like CryptoPunks. However, qualification is required. These losses are notable, but they are not worrisome in and of themselves.
The way a market works is that it is ruled by bullish and bearish phases. The NFT market is not an exception. It is presently in a negative period, as the crypto market has before and is currently experiencing.
This is by no means the end of CryptoPunks or NFTs. On the contrary, the recent acquisition of CryptoPunks by Yuga Labs, the company behind Bored Ape Yacht Club, is excellent news for the project and indicates that it is far from dormant.
The popularity of NFTs is increasing.
Despite recent reductions, NFTs continue to acquire traction and appeal.
Institutional investors like Kraken and Coinbase are still working on their NFT marketplace initiative. The Coinbase NFT platform is also in beta, and prominent companies including Adidas, Louis Vuitton, Nike, and Gucci are embracing NFTs by incorporating them into their initiatives.
Instagram is also currently testing NFT integration on its platform.
As you may have guessed, NFTs have not uttered their last word. Despite the market’s recent big falls, non-fungible tokens are growing at a rapid pace. As a result, more and more individuals are becoming aware of them. So many generally encouraging indications that should not be overlooked under the guise of occasional falls.