Research Summary
The article discusses the recent downturn in the NFT market, focusing on the Bored Ape Yacht Club (BAYC) and Azuki. The author highlights the significant drop in the floor price of BAYC from its all-time high (ATH) of 153.7 ETH in April 2022 to 35.69 ETH in June 2023. The article also mentions the issues faced by Azuki, which was once a shining light in the NFT space but has seen a shift in sentiment. The author attributes the decline to an oversupply of NFTs in a market of decreasing demand, changes in social signaling, and the mainstream moving on.
Actionable Insights
- Monitor the NFT market closely: The significant drop in the floor price of BAYC and the shift in sentiment towards Azuki indicate a downturn in the NFT market. This requires close monitoring for potential investment opportunities or to mitigate risks.
- Consider the impact of oversupply: The oversupply of NFTs in a market of decreasing demand is a key factor contributing to the decline. This should be taken into account when investing in or creating new NFTs.
- Understand the role of social signaling: The change in social signaling and the mainstream moving on have also played a role in the downturn. Understanding these factors can provide insights into potential future trends in the NFT market.
