High NFT collections bring in millions every week, but who will survive? – TechCrunch

The wild world NFTs have taken the crypto world by storm over the past 12 months, and while they are not loved by everyone, they have captured the attention of most people because of the sheer size and number of projects coming up in the space.

The most popular NFTs are the most popular, with buyers spending hundreds to hundreds of millions of dollars to buy an NFT – which is often tied to a community – that they can hold or trade. later for profit (or loss). But what about the real juice of the NFT blue-chip market?

The top NFT blue-chip collections have received multimillion-dollar sales in the past seven days, according to NFT data aggregator CryptoSlam. At that time, the 10 NFT collections alone brought in over $ 500 million in sales among 19,468 independent retailers, the data shows.

But many NFT investors said this demand would come with natural disasters and market volatility, among other things, playing a part in the future of these digital collections. and their waters.

It’s also worth noting that the number of high-roller NFT vendors is much smaller than those that enter the mainstream market for NFTs, but the new PROOF Collective-and the blue-chip perhaps – Moonbirds NFTs registered on April 16 and counted for the most part. was acquired by CryptoSlam in the past seven days, raising $ 297 million among 10,813 customers. (Mint is when a digital file is converted to NFT or digital assets on a blockchain, usually Ethereum or Solana, and its information is always stored on the blockchain.)

Even with Moonbirds, on April 17, the day after its release, there were over 10,000 customers. But that number dropped to just 296 on April 19, CryptoSlam data showed. The price of the floor, which is the lowest amount of money you can spend for digital collection in the collection, has also fallen by about 16% in the last 24 hours.

“The problem is when prices go down, it’s going fast,” Nick O’Neill, CEO and founder of The Nifty, told TechCrunch. “That’s the case with NFTs. When people start to worry, prices can move a lot.”

The Black Apes are just annoying

One of the most popular NFT collections is Bored Ape Yacht Club (BAYC), a collection of 10,000 apes on the Ethereum blockchain. It has a floor price over 113 ether, or $ 351,868. Today, 496,700 ether, or $ 15,466,641,960, the amount for BAYC has been sold, according to OpenSea data.

“If I sold mine [BAYC] currently for 50 ETH, to be sold in two seconds. If I sell it at 80 ETH, it will probably sell in a few seconds, for the current market, ”O’Neill said.

While BAYC’s stock price is nearing its peak, it once fell 37% from February 26 to March 10, 2022, OpenSea data reported, prior to launching its cryptocurrency , ApeCoin. Prices have rebounded, but this is a sign that most NFT projects may be facing slumps.

In March 2022, Yuga Labs, the parent company behind BAYC and others, raised $ 450 million in a large -scale fundraiser led by Andreessen Horowitz, estimating the firm at $ 4 billion. The NFT company showed no signs of slowing before this capital surge, acquiring CryptoPunks and Meebits from Larva Labs earlier that month to boost its position on popular NFT platforms.

“In this market, I don’t think water is a problem,” O’Neill said. “The liquidity problem will show up, of course, when everyone wants to buy when the market closes. It’s the best time to buy in the normal way.”

Small buyers, but big buyers

NFT has more water than the physical image market, O’Neill said. “If you try to sell paint that is worth more than a hundred dollars, you won’t get a sale unless you go to a traditional market.”

Although the traditional business market is much smaller, blue-chip NFTs are limited to buying a single, full volume of cryptocurrency is required, which often limits the market price to a small company. of people.

“The cheapest BAYC is right at $ 350,000 – if you have the money, you can deposit a fee at home,” Josh Bobrowsky, CEO of Parzival Fund, told TechCrunch. “That’s something people don’t understand that not only are these cattle, there’s no leverage; if you buy a Lamborghini, you may need $ 50,000 to leave a $ 4 million Lamborghini. But if you want a BAYC, you need a lot of money on ethereum today, full water.

In the past 30 days, there have been 40,038 customers among the top 10 NFT collections by volume of sales, CryptoSlam data shows. While that may seem like a fair number of people, the NFT community more than 458,424 NFT customers per month in March, according to Dune Analytics data compiled by user hildobby. therefore those traders accounted for only 40,038 which is 8.7% of the total NFT trader ecosystem. .

“I’m always looking at how many people are working; it’s important to how many people are working and selling,” said William Quigley, founder of the NFT WAX market and with the former founder of Tether, the world’s largest stablecoin in the mass market.

“For example, if I look at a company and it sells one product for a million dollars to one person and a company sells a million clothes for a million dollars to one million people, I think it does well. I’m with a million people., ”Quigley told TechCrunch. “Every day, most of these NFT markets and collections are number one to the number of people trading at the highest prices – that’s what you might expect.”

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