Ether hit a new high for the year today, rising over 65% in the past month. However, the NFT market valued in Ether has experienced a significant decline. Blue-chip NFTs such as Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) have seen their prices drop by more than 20% in the past week, with MAYC falling below the initial Dutch auction price of 3 ETH and dropping 10.54% in the past day.
Despite not surpassing its all-time high of $4,878 in November 2021, Ether has shown impressive growth recently, rising 16.2% in the past 7 days and 65% in the past month, surpassing Bitcoin’s 55% monthly increase. However, while Ether’s price has been rising, NFTs priced in ETH have seen significant declines. According to data from the largest NFT trading platform, Blur, blue-chip PFP NFTs including BAYC, MAYC, Pudgy Penguins, and Azuki have all experienced drops of over 20% in the past week.
Moreover, Blur’s perpetual lending protocol, Blend, launched in May last year, currently has over 70 BAYC and hundreds of MAYC NFTs in auction liquidation status. If these NFTs are liquidated, it may further contribute to their decline in value.
In previous NFT bull markets, blue-chip projects usually did not decline when the price of Ether rose because users tended to evaluate the value of NFTs in ETH rather than in the equivalent US dollars. However, this time, the increase in ETH’s price has led to a decrease in NFT floor prices, suggesting that investors may have grown tired of the lofty ideals of these projects and are unwilling to hold them for the long term. Only time will tell if the price trends of Ether and blue-chip NFTs will continue to change in this manner.
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