Ethereum’s Blue Chip NFT Market Faces 38% Month-Over-Month Decline in September
In a recent report, The Block Pro highlighted a concerning trend in the world of Ethereum-based blue chip non-fungible tokens (NFTs). September witnessed a staggering 38% month-over-month (MoM) decline in trading volume, marking a significant downturn for this thriving digital asset sector. This development raises questions about the resilience of NFT markets and their potential vulnerability to changing market dynamics.
During September, well-known NFT projects such as Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) faced notable setbacks. The decline in trading volume primarily revolved around these two giants, along with DeGods. Together, they accounted for a substantial 71% of the total trading volume within the blue-chip NFT market.
One of the most telling statistics was the drop in market capitalization for blue-chip NFT collections. Starting at $1.81 billion, this figure fell to $1.72 billion, with Milady Maker experiencing a substantial 40% drop in valuation. The only positive note was that Pudgy Penguins saw a 20% increase in floor price during the same period.
Perhaps the most worrying aspect of this decline was the impact on the earnings of NFT creators. The monthly royalty earnings for blue-chip collections hit a two-year low, falling from $960,000 in August to just $465,000 in September. The decline was significantly influenced by Blur’s implementation of a 0.5% minimum royalty fee, further challenging the income prospects of NFT creators.
BAYC and MAYC, once revered as the cornerstones of the blue-chip NFT space, experienced significant declines during September. BAYC’s floor price dropped from 27.2 ETH to 24.44 ETH, with the current floor price at 25.63 ETH – a level last seen in August 2021.
Market cap for blue-chip collections fell from $1.81B to $1.72B, highlighted by a 40% drop in Milady Maker’s valuation. Pudgy Penguins was the lone riser, with a 20% floor price increase. pic.twitter.com/2bRT00TgMk
— The Block Pro (@TheBlockPro__) October 9, 2023
MAYC faced a similar downturn, with its floor price plummeting by 15% during the same period, reaching as low as 4.9 ETH, the lowest point since November 2021. These substantial decreases are indicative of the challenges faced by even the most established NFT collections in a changing market landscape.
CryptoSlam’s data revealed that the BAYC NFT collection’s sales volume dropped from $26.24 million in August to $14 million in September, representing a severe 76% decline. Furthermore, the unique buyer and seller counts for BAYC pieces fell by 49% and 46%, respectively, indicating a reduced interest in trading, even as prices dropped.
MAYC NFTs also experienced a decline in sales volume, with September’s $8.06 million marking a 28% reduction from the $11.14 million recorded in August. This is part of a broader downward trend, with data from CryptoSlam showing that MAYC’s monthly sales volume has dropped by a staggering 88% year-to-date.
The decline in trading volume, market capitalization, and royalty earnings for blue-chip NFT collections throughout September raises important questions about the sustainability of the NFT market. While NFTs have garnered immense attention and value in recent years, this recent trend highlights the market’s vulnerability to fluctuations and the need for creators and collectors to adapt to evolving conditions.
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