During Cryptocurrency Market Crash, NFTs Appear as a Wallet Saver

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  • The current floor price for the Bored Ape Yacht Club (BAYC) Collection is 114.3 ETH ($325,000 at today’s price). The average sale price has fallen significantly since early May, according to the analysis. However, the average sale price will continue to increase until 2022.
  • The $1.6 trillion level proved to be firm support, with repeated bounces. The most recent retest was on April 30, resulting in a 5% increase. However, the future remains bleak, given that the value of the entire crypto market is down 43% from its all-time high in November 2021.
  • Bitwise CEO Hunter Horsley shared YTD performance numbers for several of the crypto asset management firm’s funds on Twitter. The Bitwise DeFi index (Uniswap, Aave and Maker are the top three contributors) recorded the most dramatic loss, at -53%.

The Bitwise Blue-Chip NFT Index is holding up against expectations, according to YTD performance data from Bitwise CEO Hunter Horsely. Crypto markets are struggling amid macroeconomic vulnerability. However, Bitwise fund performance data reveals that NFTs are holding up well in the face of uncertainty.

Cryptocurrency markets are under pressure

Since early April, crypto markets have seen a noticeable decline. The total crypto market cap fell $448 billion from its local high of $2.1 trillion during this time. Analysts said investor sentiment shifted towards risk due to broader macroeconomic considerations. And, because cryptocurrencies are often considered high-risk investments, others believe the bear market has already begun.

Since mid-February, the $1.6 trillion level has proven to be firm support, with repeated bounces. The most recent retest was on April 30, resulting in a 5% increase. However, the future remains bleak, given that the value of the entire crypto market is down 43% from its all-time high in November 2021.

Bitwise CEO Hunter Horsley shared YTD performance numbers for several of the crypto asset management firm’s funds on Twitter. The Bitwise DeFi index (Uniswap, Aave and Maker are the top three contributors) recorded the most dramatic loss, at -53%.

Surprisingly, the Bitwise Blue-Chip NFT Index (Bored Ape Yacht Club, CryptoPunks and Mutant Ape Yacht Club are the three main constituents) was the only fund in the black. A Twitter user commented on the funds’ YTD performance, saying that a situation in which NFTs save our portfolios would have been absurd a year ago.

If you told someone a year ago that all stocks and crypto would fail, but NFTs would save our wallets, they would have laughed so hard. Jpegs for jpegs, or the ultimate status symbol? While it is true that non-fungible tokens are used for more than just digital artwork, the argument over their use remains.

Is NFT slowing things down

According to a recent Bloomberg report, the average NFT sell price fell from $6,900 on January 2, 2022 to below $2,000 in early March, indicating that the market is cooling. Additionally, total daily average sales increased from $160.2 million on January 31, 2022 to $26.2 million on March 3, 2022.

This model, however, does not appear in higher level NFT collections. The current floor price for the Bored Ape Yacht Club (BAYC) Collection is 114.3 ETH ($325,000 at today’s price). The average sale price has fallen significantly since early May, according to the analysis. However, the average sale price will continue to increase until 2022.

As a result, the data suggests a split in the market. While the average price and volume of NFT sales are falling, top collections such as BAYC are bucking the trend. Top-tier NFTs, on the other hand, will continue to outperform as the year progresses

ALSO READ: Why Bitcoin and Other Crypto Assets Should Consolidate After Fed Meeting

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