NFT Wars: CryptoPunks Soar, BAYCs Tumble

Isn’t it the old monkey that we teach to grimace? – Long denigrated in favor of new more trendy NFT collections, these good old CryptoPunks finally seem to be getting back on their feet. Indeed, the floor price (or floor price) of our favorite pixels has just exceeded that of the famous monkeys of the Bored Ape Yacht Club (BAYC). An event that had not happened since January 2022. We tell you everything in this article.

BAYCs, old-fashioned NFTs?

Remember, not so long ago the famous BAYCs were in the limelight. Celebrities like justin bieber Where Neymar snatched them at exorbitant prices to “be part of the club”. It must be said that the collection launched by Yuga Labs had something to want. Private parties, gifts worth thousands of euros, airdrop in ApeCointhe collection’s own cryptocurrency or the construction of a dedicated metaverse. In short, the Yugalabs teams were on all fronts, in all battles and were surfing the innovations of the moment in order to promote their collection.

Yuga Labs is their armed apes to surf all the trends

Only then, the bearmarket doing its work and settling permanently on the market, this craze now seems to have died down. And the floor price of the collection did not escape it. He is now flirting with 67ETHa trifle of $107,000 in current Ethereum price. Which is still a sum. However, at its peak at the end of April 2022, it was necessary to spend no less than 136ETH to acquire the cheapest of them, at a time when theEthereum flirted with the 3000$ unit. A sum of $408,000 therefore, far from being within the reach of all budgets. While at the same time, only 62 small ETH was enough to afford a CryptoPunk.

On the other hand, today, the floor price of BAYC falls like a pancake while that of CryptoPunks rises. Slowly but surely, these rebellious figures filled with pixels reach the 66.5ETH, after falling momentarily around 50 ETH. Would investors be so nostalgic as to return to their first love? Or is there a more down-to-earth reason behind this mystery?

The price curve of NFT CryptoPunks joins that of BAYC, which had not happened since January 2022.
Comparison of the floor price of BAYC and CryptoPunks NFTs – source: Dune Analytics

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Cryptopunks back in the spotlight?

Although some news could boost the price of their CryptoPunks competitors, a more technical reason could be hiding behind this simian drop to the point of scaring investors away. And the culprit could be the BendDAO platform. This platform offers NFT holders to deposit them as collateral against the borrowing of ETH. A good deal at first sight. Except that in these times of decline, many borrowers are dangerously approaching the liquidation limit set at 70% of the value of the NFT. Once reached, BendDAO recovers the NFT placed as collateral and sells it to the highest bidder. As a result, the floor price drops, which leads to the liquidation of the other holders of these collections. BendDAO collects the new liquidated NFTs to sell them off again, further lowering the floor price and feeding the infernal loop.

Unlike BAYCs, Cryptopunks are not listed on BrendDAO and are therefore not impacted.
CryptoPunks are on the rise

2.8% of BAYC and 1.6% of MAYC (Mutant Ape Yach Club) are currently posted as collateral on the platform. Although a vote is underway to propose raising the liquidation limit to 95% of the value of these NFTs instead of 70%, the outlook is not very reassuring. However, no CryptoPunks are present on the platform, which reassures their holders.

Whether the CryptoPunks are back in front of the BAYCs for a long time or whether the latter remain in pole position, for Yuga Labs, it doesn’t really matter. Indeed, the latter bought last March the CryptoPunks and Meebits collectionspreviously held by the company Larva Labs. The Yuga Labs company seems to specialize in acquiring luxurious NFT collections. In a world where NFTs are multiplying every day with new use cases, from gaming to music, from art to social networks, there is no doubt that this strategy could prove to be a winner in the future.

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NFT Wars: CryptoPunks Soar, BAYCs Tumble

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