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Here is the breakdown of today's newsletter:
🔵 Hidden Blue-Chip Collection Responsibility
📉 Did Blur Crash the NFT Market?
Hidden Blue-Chip Collection Responsibility
In the past week, a lot has happened within the NFT arena that may leave a lasting impact on the way that we perform as a market in the future. What started with a botched reveal by Azuki for their Elementals drop (pretty much a copycat of their original collection), has now transcended into people wondering whether all NFTs are botched. Prices have been sliding toward the negative while sentiment and market attendance remain at an all-time low.
Let’s analyze the floor prices for the top few collections in the market: (Pre-Azuki Elementals → Present, at time of writing)
Azuki: 13 ETH → 6.9 ETH
BEANZ: 0.69 ETH → 0.47 ETH
Azuki Elementals: 2 ETH mint → 1.12 ETH
BAYC: 38 ETH → 30 ETH
MAYC: 7.4 ETH → 6.4 ETH
The Drop: While prices should not be the definitive reason why the market is sliding downwards, they are a firm indicator of the direction in which the market is currently moving. People are offloading their NFTs as they see their beloved digital assets losing money every trading cycle. Blur bidding exploitation continues to be rampant. “Optional” royalty fees remain at an all-time low, meaning that traders are opting not to pay royalties to their respective asset collections. Welcome to the recipe for a market decline.
Despite there being a constant influx of projects created/released in the market, we must recognize the impact that blue chip collections leave on others. If their launch is seen as a “failure” by the mass majority of the NFT ecosystem, the rest of the market also starts to decline because people designate blue-chips as a way to gauge the trajectory of the entire market. The responsibility that blue-chip collections have for the overall performance of the market is truly understated. Up until now, there was so much to trade that we didn’t notice a shift in overall market sentiment, as we see now. That is a bit concerning, to say the least. Put on your seatbelt. This ride may get a bit bumpier before we get onto a smooth road up the mountain. WAGMI.
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