Anadolu Agency via Getty ImagesIn recent weeks, the floor prices of the largest and most prominent non-fungible tokens collections have plummeted. Popular blue chip projects such as CryptoPunks, the Bored Ape Yacht Club, Mutant Apes and Azukis dropped as much as 62% in the past month.
The NFT decline occurred against a backdrop of recent bitcoin strength. While NFT prices were dropping, bitcoin has continued to creep towards new yearly highs, now sitting at a year-to-date return of about 82%. However most altcoins, crypto assets other than bitcoin and ether, have not fared as well. This is signified by the rise in bitcoin dominance, which has reached above 50% of the total crypto market capitalization for the first time since April 2021.
In fact, just eight wallets traded 4,000 ETH or more on Blur in a single day in February, according to NFTstats.eth, pointing to concentration of trading among a few large players on the exchange. The few things I am doing as an investor: more time researching future blue chips to figure out if getting into a community makes sense. Can the project connect to actual products and services? That, to me, is the ultimate utility. I am also looking at what qualifies an NFT collection to be considered a current or future blue chip.”According to analytics site NFTGo, the NFT Blue Chip Index dropped 30% over the last 30 days and 54% for the past year.