The once-vibrant market for non-fungible tokens (NFTs) has experienced a substantial downturn from its peak, when digital artwork garnered widespread global fascination. During 2021 and 2022, collections such as CryptoPunks and Bored Apes emerged as cultural sensations, attracting high-profile celebrities including Justin Bieber, LeBron James, and Madonna. Notably, Snoop Dogg and Eminem even performed as Bored Ape avatars at the MTV Video Music Awards.
The NFT market’s valuation surged to an astounding $617 billion by May 2022. However, it has since plummeted to approximately $44.3 billion, marking an extraordinary 92% decrease. CoinTelegraph reports that the value of some of the most costly NFTs from the peak of the market has experienced dramatic declines.
CryptoPunks, a pioneering NFT collection launched on Ethereum in 2017 by Larva Labs, significantly contributed to the NFT surge. In 2021, nine CryptoPunks were auctioned by Christie’s for a total of $16.9 million. Notably, CryptoPunk #5822, one of only nine alien punks, was acquired by Deepak Thapliyal, CEO of Chain, for 8,000 ETH (approximately $23.7 million) in February 2022. Its value has since been halved, mirroring the broader market trend.
Similarly, EtherRock #93, part of a 2017 series of 100 “Pet Rocks,” was sold for $1.8 million in 2021. Currently, an EtherRock trades for about 200 ETH, reflecting a drop of approximately $1 million from its peak price.
The Bored Ape Yacht Club, another major NFT collection that gained mainstream recognition in 2021, has also seen its value decline. Bored Ape #8817, with its rare gold fur, was sold for $3.4 million at Sotheby’s. Recent transactions, however, indicate significant losses for investors, with similar golden apes now fetching as little as $665,000.
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