NiftyNoon: Why are NFT Floor Prices Crashing to New Lows?
Following a tumultuous week for Azuki, the entire NFT market has crashed to new lows (July 5, 2023)
Nifty Thought
It has been a brutal long weekend for NFTs. Many collections have crashed to lows that have not been seen for years. While there was some slight relief on July 4th, floor prices are still largely down across the board. Even Bored Ape Yacht Club, which led the market with an 80 ETH floor price earlier this year, briefly held a floor price below 30 ETH.
This has largely been the result of cascading loan liquidations. As lenders went underwater on their loans and received NFTs on defaults, they then sold those assets into bids immediately to salvage as much money as possible. This increased sell pressure pushed floor prices down which caused more loan defaults and even more sell pressure. NiftyNoon discussed the potential unraveling of NFT leverage in a vicious cycle back in May when discussing the introduction of Blur Lending. In that newsletter, we noted that the introduction of new synthetic liquidity through leverage would “likely be highly positive for NFT asset prices in the short term” but in the long term “could lead to complications as lenders begin to exit the system and prices cascade down”. This serves as a good lesson for all NFT market participants: high leverage in the ecosystem is typically a strong sell signal.
Highlighted News
The NFT market won't progress to its next chapter without enough people taking losses:
https://twitter.com/pimpcapital/status/1675177318443257858?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Ubisoft presents first web 3 game:
https://twitter.com/championsverse/status/1674012601213235203?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
2 BAYC, 9 MAYC, 2 BAKC, 5 Kodas, 3 Penguins, 11 Otherdeeds, and 5 HV-MTL all phished likely through a fake HV-MTL game site:
https://twitter.com/cirrusnft/status/1675055410355773442?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Project and Community News
SEC says spot Bitcoin ETF filings are inadequate:
https://twitter.com/watcherguru/status/1674775113126772742?s=46&t=kLyseQ0FEhlZ-WGi2h2c7Q
Frank DeGods presents DeGods new format of a "roadmap":
https://twitter.com/frankdegods/status/1674746733761527808?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Professor John Keeting reacts to Memeland Captainz reveal:
https://twitter.com/profkeeting/status/1675353970737397760?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
9GAG CEO speaks out about Captainz reveal and future:
https://twitter.com/9gagceo/status/1675112962280013830?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Pudgy Penguins announce they will have a booth at San Diego Comic Con 2023:
https://twitter.com/pudgypenguins/status/1675623912271380481?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Luca Netz shares his team about to put on a clinic the likes of which the space has never seen before:
'State of Moonbirds' -- a thread:
https://twitter.com/kevinrose/status/1676092268963598336?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Memeland advices holders to check dashboard:
https://twitter.com/memeland/status/1675360539017633793?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Moonbirds Oddities: the Hearth of the Odd God has awakened, as users may now nominate their Oddity for the upcoming burn, which starts soon:
https://twitter.com/oddities_xyz/status/1674945128409235457?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
How @nansen_ai’s NFT God Mode reveals the wash trading activity of @ether, an anime-style NFT project on Ethereum:
https://twitter.com/dasilva_8888/status/1675080566918598657?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
@akastevey tweets about Moonbirds and Mythics “infinite possibilities in the future":
https://twitter.com/akastevey_/status/1675191946816679936?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Ether announces change to the Ether mint structure:
https://twitter.com/ether/status/1675365873920651264?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
For the first time since mint day Mutant Apes are being sold for $9600:
https://twitter.com/cirrusnft/status/1675398757536645120?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
NFT market decline:
https://twitter.com/pimpcapital/status/1675177318443257858?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Quick Stats:
OpenSea Daily Volume: 2,418 ETH (▼ 18.67%)
Blur Daily Volume: 11,551 ETH (▼ 1.99%)
BTC: $30,770.23 (▼ 0.46%)
ETH: $1,930.07 (▼ 1.03%)
Solana: $19.19 (▲ 0.32%)
Polygon: $0.70 (▼ 0.06%)
NFT Daily Winners:
🧝🏼♀️ DigiDaigaku: 2.80 ETH (▲ 17.15%)
🌈 Doodles: 1.66 ETH (▲ 14.37%)
🧟 Mutant Ape Yacht Club: 6.17 ETH (▲ 11.57%)
🧬 Clone X: 1.89 ETH (▲ 8.43%)
🥔 Potatoz: 1.59 ETH (▲ 6.96%)
⛩️ Azuki: 7.17 ETH (▲ 6.85%)
🏳️🌈 Chromie Squiggles: 9.79 ETH (▲ 6.41%)
🐧 Pudgy Penguins: 4.10 ETH (▲ 3.28%)
🦉 Moonbirds: 1.63 ETH (▲ 2.39%)
🏴☠️ Captainz: 6.05 ETH (▲ 1.17%)
🐈⬛ VeeFriends: 1.79 ETH (► 0.00%)
🥃 Proof Collective: 6.10 ETH (► 0.00%)
NFT Daily Losers:
🦧 Bored Ape Yacht Club: 29.69 ETH (▼ 1.04%)
🚬 CryptoPunks: 41.99 ETH (▼ 1.18%)
Notes:
If you find quick daily NFT updates helpful, please feel free to subscribe:
The content on this site is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Managed by @AxuETH, @NPapaellinas, @SpeedyGonzale87, @SSPxLEO and @xhuewa
🙏🏼