Bored Ape Yacht Club NFT Prices are Declining – Here is Why
The floor price of leading Ethereum-based NFT collections (popularly known as blue chips), like CryptoPunks and Bored Ape Yacht Club, has declined significantly in the past 24 hours. According to data from Coingecko, the cheapest Bored Ape Yacht Club NFT is down 8%, while CryptoPunks has dropped by 7%.
Moreover, the Bored Ape Yacht Club floor price has fallen nearly 21% In the previous thirty days. As of this writing, the cheapest Bored Ape is priced at $68,100 or about 36.3 ETH, the lowest since September 2021.
Meanwhile, another blue-chip NFT collection, Mutant Ape Yacht Club, has also seen its floor price decline sharply this month. It’s down 25%, meaning the cheapest Mutant Ape is now changing hands for $13,050 or roughly 7 ETH.
In April 2022, the most expensive Bored Ape Yacht Club NFT traded at $430,000 or 151 ETH. Since then, the NFT market appears to have lost momentum, with blue chip NFTs being the most affected compared to other projects.
Is Blur Fueling Price Drops?
Many NFT traders are convinced that the current price crash is fueled by marketplace Blur. And that’s because the trading platform no longer gives traders double rewards. In February 2023, Blur rose to fame after it announced that it would reward the most active traders on its platform. At the time, the marketplace overtook market leader OpenSea in terms of trading volume. Blur’s reward program also caused the total NFT trading volume to surge massively. But since the rewards were stopped, the trading activity has reduced, affecting NFT prices.
At the start of last month, Blur rolled out Blend, an NFT lending platform. Within a few days, the new lender saw a spike in volume as traders quickly moved to farm Blur’s native token BLUR. Data on Dune shows Blend has processed $930 million in loans since its inception and now dominates 94% of the NFT lending world.
Crypto Player Blames Blur for NFT Price Decline
Meanwhile, Oxngmi, the developer of DeFi analytics platform DefiLlama, claims Blur has asked its users to take as many loans as possible in order to receive free BLUR tokens. He says the loans have reduced the trading activity of blue chip NFTs as several Bored Apes have been used as loan collateral by their holders. This has, in turn, caused NFT prices to drop.
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