NFT prices take a gut hit as the crypto bear market deepens

Without a doubt, crypto has a way of humbling even the most confident and this market is definitely not for the faint of heart. NFT investors have entered what appears to be a bear market and the recent chaos is also affecting community morale.

The drop in NFT prices came as the Federal Reserve hiked interest rates, Terra’s Luna and UST-based platforms collapsed, and traders came to terms with the reality that the entire sector could be in a bear market.

Things aren’t as bad as they were in 2018, but the NFT market hasn’t matured as much. Despite this, investors are already buckled for potential future gains and ways to survive the current market downturn.

Will Blue Chip Tier NFTs Hold the Line?

Week-over-week, most top-tier NFTs maintained their position in the top 10 by total sales, although some reserve prices had fallen nearly 25% over the past 7 days.

In particular, Yuga Labs’ Otherdeed NFTs, Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), have all seen their reserve price drop. BAYC has since recovered from a fall in its reserve price following the launch of Otherdeed, posting a minimal 3% drop over the past 7 days. MAYC has seen its reserve price drop nearly 13% over the past 7 days.

MAYC has had quite a ride, falling drastically from its then high of 41.2 Ether to $120,386. Currently, MAYC is valued at 19.6 Ether, which is a discount of about 53%, as MAYC’s pump was largely due to their eligibility to claim Yuga Labs’ Otherdeed NFT.

Despite all the uproar and controversy surrounding Otherdeed NFT’s drop, the project remains at the top of the charts in total volume even after a 75% drop in the last 7 days.

The functionality of these digital lands is still unclear and Otherdeed has seen its reserve price in a steady downward trend. In the last 7 days, the floor price is down 1.2%, and since minting, the price is down 55% from its all-time high of 7.4 ether.

RTFKT Studio’s CloneX floor price has fallen nearly 13% over the past 7 days, with volume down just over 12%. However, these numbers do not shake the community.

Despite the recent downturn, the RTFKT ecosystem is buzzing after celebrating the opening of Japanese contemporary artist Takashi Murakami’s “An Arrow Through History” in New York City. The exhibition is currently at Gagosian Gallery and features CloneX-inspired pieces as well as pieces from Murakami’s first NFT collection, Murakami Flowers.

Even as the NFT market cools, pricing seems like a sell-off for some investors looking to capitalize on news. As it turns out, Azuki NFT, the proclaimed blue chip, made the biggest leap in the face of one of its founders, Zagabond, who openly admitted his turbulent past plagued by crushing the CryptoPhunks and Tendies community.

I messed it up.

After today’s spaces, I’ve realized my shortcomings in dealing with the previous projects I’ve started. To the communities I left, to azuki holders and to those who believed in me – I’m truly sorry.

1/x

— ZAGABOND.ETH (@ZAGABOND) May 11, 2022

NFT investors buy the rumors and the news

As the famous saying goes, “buy the rumor, sell the news” to maximize profits. Faced with Zagabond’s admission, holders decided to vote with their fortunes and Azuki’s floop police dropped 74%.

Despite this volatility, Azuki currently ranks at the top of the charts for total sales volume on OpenSea.

NFTs are still considered the Wild West, but some investors are learning that everyone’s barometer of morality and ethics is slightly different. After the news ripped through, Azuki’s reserve price fell steeply but surely NFT influencers quickly jumped in and swept the floors for potential future opportunities.

Since May 10, the Azuki minimum price has steadily increased above 10 ethers, an impressive 200% increase in overall sales volume that came after new news broke.

Azuki’s partner collection BEANZ had also accepted an 83% reduction in the reserve price. Despite the 248% volume increase, BEANZ overall sales volume is down 64% in the last 7 days.

Prior to the announcement, BEANZ was trading at 6.8 Ether and this price has been steadily declining since the current price was revealed at 1.65 Ether.

Other anticipated anime-inspired drops have surfaced, such as: B. PXN: Ghost Division NFT, which slipped to the top of the charts on OpenSea in terms of volume. Ragnarok Meta also rose for a brief moment in the pre-reveal phase, but rumors that Zagabond is behind the project seem to weigh on the price.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.