BAYC Floor Price Has Dropped Over 76% Since All-Time High, What’s Next for NFT?

• BAYC is experiencing a selloff, prompting the community to find ways to drive value during a market downturn.

• The slump in BAYCs value is attributed to various factors, including general market pessimism, decreased media attention, and high-profile sales by collector Jeffrey Huang.

• While there are indications of a potential recovery, the current price level is still considered insufficient for short-term speculators.

The current selloff in Bored Ape Yacht Club (BAYC) NFT and related digital assets, as the poster child of the NFT market, has the community seeking for methods to drive value to the assets in a down market.

Bored Ape Yacht Club has been on an emotional rollercoaster over the last several days. Several investors sold their prized blue-chip NFTs, triggering a wave of Fear, Uncertainty, and Doubt (FUD).

BAYC has had a difficult time recently as the bear market has finally taken its toll. Because of the slump, several holders have sold their NFTs, lowering the NFTs total value.

The Bored Ape Yacht Club has seen steeper losses in recent weeks, with the floor price plummeting over 19% in the previous 30 days when measured in ETH. A Bored Ape costs 36.5 ETH.

The BAYC collections fortunes have changed due to a multitude of fundamental issues. General market pessimism, the apparent end of usefulness, whale sell-offs, and diminished media attention are among them. But, many in the know believe that recent action in the Blur ecosystem has had the greatest overall influence.

Famous NFT collector Jeffrey Huang, also known as Machi Big Brother, sparked a frenzy over BAYC NFTs. Huang‘s succession of sales and subsequent acquisitions from the collection caused significant instability in the NFT’s price.

Huang sold approximately 50 Apes, according to statistics from Blur, a well-known NFT marketplace. He completed a single transaction last Saturday, selling 19 Apes for 651 ETH, which equated to almost $1.2 million at the time of the sale.

ApeCoin (APE), marketed as the core of the worlds most valuable NFT ecosystem, reached an all-time low of $1.936 on June 19, down more than 90% from its all-time high, before recovering.

APE price chart. Source: TradingView

Studying BAYCs OpenSea statistics revealed an intriguing pattern. From May through roughly June 18, the NFT maintained a consistent floor price, averaging around 45 ETH. At this writing, the floor price was hanging around 38.6 ETH, indicating that a recovery was underway.

Source: OpenSea

This development revealed a favorable relationship between increasing social interaction and price attempts to correct higher, signaling a possible value recovery.

However, according to the current assessment based on the market situation, this recovery level is still not worth it for speculators to consider short-term holding, a rally to the 40 ETH price level could be held by players waiting for a bullish signal while the current price level still does not satisfy the above requirements.

What Is the Future of NFTs？

Knowing the fact that giving value to customers has always been a non-negotiable part of marketing, NFT creators have started to design more engaging utilities. A prime example is entertainment and travel companies selling NFT tickets. This way, their customers can exchange their tickets without having to deal with customer service.

Furthermore, the metaverse has become a fast-growing industry — JP Morgan Chase recently said that the metaverse would generate $1 trillion in annual revenue for businesses spanning a cross-section of industries. It is NFTs that will become the building blocks of these digital worlds, and encoded utilities will unlock experiences such as VIP events or unique discounts.

Interoperability Will Be Essential

NFTs ability to create community and provide access perks online and in real life make them the perfect tool. As NFTs and metaverses develop, so will the complexity of their use, and interoperability between metaverses will be as important as their utility in real life.

Since the metaverse reflects the real world, interoperability is core to its success. The metaverse — the integration of borderless virtual worlds — aims at creating fluid socio-cultural interactions that go beyond our traditional physical world. Reaching more broadly, the metaverse will offer more variety in its content, and interoperability will expand the possibilities for utility, bringing a seamless experience and higher value for users.

Blockchain and NFTs will bring more transparency to the digital sphere as their ability to prove digital ownership will act as an economic incentive for adoption.

Gen Z is more likely to invest in cryptocurrencies and NFTs than stocks in comparison to millennials, and their investments will fuel markets as digital assets become increasingly mainstream. Like assets, these sectors will grow as younger, digitally native generations mature.

Greater Ease of Adoption Is Needed

Web3 is a chance to reinvent and reimagine the undesirable parts of Web2.0 and smooth out the crinkles of UX. Because blockchain is a decentralized and trust-free environment, the existing Web3 technology has security trade-offs. When there are hacks or attacks, users have complete control over their data and funds, and there will be no intermediaries to turn to. In Web3, security is a primary priority and doesnt set back growth and development.

The reality is the NFT market will strengthen and grow when it is easier for more people to adopt. Therefore, we need to make the NFT journey less complicated and more recognizable through ongoing education from providers and mainstream media.

Even though NFT marketplaces offer one-click login options, new users are bound to feel discouraged from using a platform if they have an issue while creating an account or trying to buy and sell NFTs. And the lack of live chat support can create the perfect storm for customer turnover. Twitter and Discord are the most effective social media channels to keep your audience up-to-date and explain the entire process of buying and selling NFTs. Additional education can be in the form of videos, how-tos and inline info buttons via websites.

The bottom line is that we are at the beginning of the NFT journey, and the market is maturing: We expect to see a future where many things will evolve into NFTs.