**Bored Ape Yacht Club: The Decline in NFT Prices and Liquidations**
**Bored Ape Yacht Club and the NFT Market**
The Bored Ape Yacht Club (BAYC) is often one of the first projects that comes to mind when people think of non-fungible tokens (NFTs). Since its launch in 2021, this profile picture project has been closely associated with the world of NFTs. However, with the recent decline in the NFT market, the Bored Ape Yacht Club has also been affected. According to a report by DappRadar, BAYC’s price floor hit its lowest point in 20 months in June. The lowest purchase price for one of these NFTs was about $52,000, which is significantly lower than the previous minimum price of $90,000. The overall NFT market fell 38% quarter-over-quarter to just under $3 billion.
**Liquidations and Over-Leveraged Investors**
The falling price floor of Bored Ape Yacht Club NFTs has caused some collectors to face liquidity issues. Some collectors have tried to use their Bored Apes as collateral for loans, but they are now being forced to sell off their NFTs. BendDAO, a lending protocol that facilitates these NFT-backed loans, had 27 Bored Apes and 25 Mutant Apes up for auction, as reported by Protos. According to Gabe Frank, the cofounder of NFT lending protocol Arcade, some investors have found themselves over-leveraged and unable to repay their loans. This has led to forced sell-offs on certain platforms.
**Blaming Blur and Azuki for Liquidations**
There are differing opinions on what has caused these mass liquidations. Some have placed blame on Blur, an upstart marketplace with an NFT lending protocol. Others have pointed to Azuki’s missteps with their new Elementals collection as exacerbating the problem. Regardless of the root cause, the ripple effects have been significant. One Bored Ape owner, Ramon Govea, the founder of Myth Division, took out a loan to build his Web3 business and is now facing the consequences. In a tweet, he expressed his disappointment that doing the right thing has resulted in well-intended people being harmed while scammers go unpunished.
**Consequences on Crypto Twitter**
The consequences of these liquidations can be seen on Crypto Twitter. Several people have shared that they have liquidated their Bored Ape Yacht Club NFTs due to the lower floor price or because of their own poor investment decisions. However, there have also been instances of kindness, with some BAYC owners offering support and assistance to those facing liquidation.
**Other News in the Metaverse**
In other news, Major League Baseball is set to debut a new virtual stadium created by metaverse technology company Improbable. This virtual stadium will allow fans to interact and watch games together in a digital environment. Autograph, the company cofounded by Tom Brady, is shifting its focus away from NFTs after experiencing a significant decrease in revenue. The company will now focus on helping celebrities build and engage with their fanbases. Open platform fxhash is expanding from the Tezos blockchain to Ethereum based on feedback from partners. This move will provide better visibility and higher asking prices for artists. Additionally, Bitcoin NFTs, known as Ordinals, saw a trading volume of $210 million in the second quarter, a sharp increase from the previous quarter. Finally, NFTTrade, a marketplace for non-fungible tokens, integrated the XRP Ledger into its platform to offer protocol-level royalty protections for creators.
In conclusion, the Bored Ape Yacht Club has experienced a decline in value along with the overall NFT market. This has led to mass liquidations and difficulties for over-leveraged investors. The consequences of these liquidations can be seen on Crypto Twitter, where some BAYC owners have offered support while others have shared their own stories of loss. Despite these challenges, the metaverse continues to expand, with new developments in virtual stadiums, celebrity-centric platforms, and blockchain integrations.
GIPHY App Key not set. Please check settings