NFT Markets Lag Behind Bitcoin Rally – Top Collections Weaken

Bitcoin (BTC) broke the $73,000 mark and is trading at an all-time high. The crypto reserve currency is thus continuing its record price and is pulling many popular altcoins up with it. But the upswing in the NFT markets has only partially arrived, as the market overview shows. Blockchain data on the marketplaces that focus on Ethereum NFTs recorded even lower sales of $786 million in February 2024 than in January ($868 million).

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At the end of 2023, the NFT markets had increased significantly, but now a moment of stagnation appears to be occurring

In particular, the famous NFT collection Bored Ape Yacht Club (BAYC) cannot generate its own momentum. The floor price for current minimum prices of individual NFTs from the BAYC collection has fallen to below 15 Ethereum (ETH) . In the golden age, individual items were easily offered and sold for 150 Ethereum.

Even CryptoPunks, probably the world’s most famous NFT collection, cannot yet repeat previous records of over 100 Ethereum, calculated at around 50 ETH per individual item. However, as with BAYC, it should be noted that when calculated in US dollars, the situation for sellers is slightly better because Ethereum pumps itself.

In 2023, Bitcoin NFTs aka Ordinals were the new discovery for the NFT markets and were preparing to give Ethereum NFTs serious competition in terms of sales. Binance even opened a marketplace specifically for Bitcoin NFTs six weeks ago. But CryptoSlam data shows this trend is cooling and Ethereum NFTs are now the clear market leader again.

Behind Bitcoin NFTs in third place among the most important ecosystems is now Solana (SOL), where there are the most buyers, but individual NFTs are on average much cheaper. In absolute terms, all other ecosystems from the BNB Chain to Polygon (MATIC) to Avalanche (AVAX) only play marginal roles in the NFT sector.

Conclusion: Are the NFT markets disenchanting themselves?

Bored Ape Yacht Club was a symbol of big plans in the last peak phase of the NFT markets; ApeCoin (APE) was even created as an accompanying cryptocurrency that wants to build a metaverse. But ApeCoin has become quiet and BAYC NFTs are no longer a showpiece for influencers, stars and starlets.

There seems to be a selection process with Bitcoin NFTs. With good timing, significant profits can still be made from popular NFT collections, but the general public is far less relevant than it was two years ago. It remains to be seen whether there will be a general loss of importance for the NFT markets or whether there will still be momentum for the controversial collectibles after a phase of consolidation.

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(Featured image by Andrey Metelev via Unsplash)

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