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Are NFT prices indicative of a sinking ship for the market? The year 2023 has not been kind to some of the biggest NFTs that dominated the market in 2022. Several notable projects have experienced significant declines in their token values, painting a challenging picture for NFT investors.
Data provided by NFTGo reveals that the Blue Chip Index, a measure of the overall performance of top-tier NFTs, has also witnessed a downward trend. It has fallen to 7,446 ETH from the peak of 12,394 ETH recorded in July 2022. Let’s take a closer look at the performance of some prominent NFT projects.
According to current trends, some of the very popular NFT projects are experiencing massive price drops. Does this mark the beginning of a bubble bursting? Or are the founders simply not doing enough? Or is the community at large to blame, with fraud and tomfoolery abounding? Some of the most affected projects are as follows:
However, the decline does not stop there. NFT giants Bored Ape Yacht Club (BAYC), have also experienced a significant drop in floor price. Once with a floor price of US$550,000, it has now dipped below US$100,000 – a drastic drop that has caught the attention of many market participants.
But don’t worry, it so happens that despite the price drop, unique NFT holders are steadily rising from the past three months.
Despite these troubling numbers, some NFT investors remain surprisingly unaffected by the ongoing decline in value. In fact, a handful of investors see this as an opportune time to invest, believing in a potential market recovery.
Contrary to this optimistic view, there has also been a notable increase in the number of blue chip NFT holders over the past year, indicating a sustained interest in these projects. However, sellers have also increased by 32%, while the number of buyers has decreased by 30%. These statistics suggest a cautious sentiment among market participants, as some choose to hold on to their assets, while others choose to cash out.
As the NFT market continues to navigate these turbulent times, it remains to be seen whether these projects will regain their former glory or whether the downward trend will continue. Investors and enthusiasts alike are keeping a watchful eye on the market, eagerly awaiting signs of a potential comeback or further weakening of NFT prices.