MAYC plummets to a record low of 2.6ETH! The Boring Ape BAYC series is in a slump

This site (120btC.coM): As Bitcoin (BTC) exceeded $70,000 this week, setting a new historical record, Ethereum (ETH) also rushed towards the top this week. US$4,000, a new high since December 2021, is quite close to the high of US$4,868 set in November 2021. However, blue-chip NFTs denominated in ETH have continued to fall significantly recently.

Boring Ape series plummeted

Among them, the Boring Ape NFT series performed the most dismally. According to CoinGecko data, the floor price of Bored Ape Yacht Club (BAYC) fell 2% today to 17.2 ETH. The floor price has dropped by 21.5% in the past seven days and by 28.1% in the past month. Compared with the historical high of 153.7 ETH set in May 2022, it has fallen by 88.8%.

In addition, according to CoinGecko data, the performance of Mutant Ape Yacht Club (MAYC), a derivative NFT project of Boring Ape, was even more tragic. Its floor price plummeted 10% today to 2.64 ETH, setting a record low, nearly 7 The daily floor price fell by 33.8%, and the decline in the past month was as high as 43.5%. Compared with the historical high of 40 ETH set in May 2022, it has fallen by 93.4%.

MAYC floor price has dropped below the initial minting price of 3 ETH, which has caused considerable fluctuations in the market. The total supply of MAYC is 20,000, of which 10,000 were publicly sold through a Dutch auction at an initial price of 3 ETH, ultimately raising approximately 28,000 ETH, which was equivalent to a value of approximately US$96 million at the time. The other 10,000 were directly airdropped to BAYC holders, which also had a certain impact on the entire market.

Continued decline may trigger serial liquidations

It is worth noting that Blur’s perpetual lending agreement Blend launched in May last year currently has more than 70 BAYC and hundreds of MAYC at auction. Liquidation status, on-chain analyst Realllelsa recently warned that if the floor price continues to fall, it may cause these NFT projects to fall into a catastrophic downward spiral.

Reallllelsa explained that the fall in floor prices will trigger the liquidation of Blend loans. When the borrower cannot repay the debt, the lender will receive NFT, and many lenders are not members of the NFT community. In order to regain their debt immediately Liquidity, they will immediately resell the NFT at a price lower than the floor price, and this will cause an endless cycle of "the floor price drops → more NFTs are liquidated → lenders sell NFT at low prices to obtain liquidity → the floor price drops further".

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