Bored Ape NFT that sold for $3.4 mn in 2021 is now at all-time low of $58.7k. Will they survive?

When you encounter an image of an ape, your mind might immediately think of zoos or ordinary drawings. However, what if that seemingly simple image held a value of 2.7 crore rupees?

Welcome to the world of Bored Ape NFTs, where Non-Fungible Tokens have revolutionized the perception of art. These NFTs depict bored apes with punky expressions, dressed in human clothes, and showcasing vibrant multicolored or metallic bodies, symbolizing success and wealth.

Despite their astronomical value, the Bored Ape NFTs are currently facing a significant downturn. Since their launch in 2021, their prices have plummeted to an all-time low, reaching a mere $58,700 (approximately 43 lakh INR).

Understanding the Apes

• The Bored Ape Yacht Club (BAYC) comprises 10,000 unique Bored Ape NFTs residing on the Ethereum blockchain.
• Ethereum is a digital platform known for its own form of digital currency called ether (ETH). It is used for various transactions and fees within the network.
• When someone owns a Bored Ape NFT, it signifies that they possess a distinctive piece of digital information stored on a special digital ledger known as a blockchain.

• This blockchain permanently records details such as the NFT's origin and sales history.
• Initially, Bored Ape Yacht Club tokens were priced at 0.08 Ether (ETH), which equated to around $220 (INR 18 thousand).
• However, their price escalated significantly over time. By mid-October 2022, they were being sold for 76 ETH, approximately $100,418 (INR 82 lakh).

The crash

BAYC has experienced a decline in the average price of its NFTs, mirroring the overall slowdown in the NFT market and the devaluation of Ethereum.

• The lowest price for BAYC NFTs dropped to 27.4 ETH, approximately $53,000 (INR 43 lakh), before experiencing a slight recovery.
• The last time BAYC's lowest price fell below 30 ETH was in October 2021, prior to its boom.
• Since April of this year, the floor price of BAYC NFTs has decreased by half.

• At the beginning of the month, it was trading at 64 ETH, approximately $126,000 (INR 1.3 crore), but has now slightly recovered to 29.5 ETH, approximately $57,800 (INR 43 lakh).
• According to OpenSea, the trading volume of BAYC has decreased by 38% in the last 24 hours, reaching its lowest point in five months at 55.6 ETH, equivalent to around $110,000 (INR 89 lakh).

NFT trader Jeffrey Huang, also known as Machi Big Brother, sold 50 Apes over a single weekend. This included a batch of 19 Apes sold on the Blur marketplace for 651 ETH, amounting to almost $1.2 million (INR 9 crore).

Even Justin Bieber's highly publicized BAYC NFT, which he purchased for a staggering $1.3 million (INR 106 crore) in January 2022, is now valued at only $59,090 (INR 48 lakh). Despite his immense fame, the singer's investment in the digital artwork has significantly declined in value as of July 2023.