The NFT market has been sent into a tailspin over the past week, resulting in a mountainous 1,200 non-fungible collectibles being cut loose through liquidation, following the floor prices of numerous blue-chip assets sinking to new lows.
According to data from the NFT analysis website, Snow Genesis, a sea of NFTs utilized as collateral for loans, is tottering on the edge of financial disaster. Despite a handful of such debts being fully paid, numerous digital tokens are in the auction block.
Feature spotlight: sort by maturity to see loans that are coming due. Here we see a number of maturing loans on Azuki are likely to default.
Many loans are also currently in auction on both Blend and BendDAO. On BendDAO there are now 28 Azuki in auction and 17 ready to be… pic.twitter.com/2iSia2eKik
— SnowGenesis (@0xSnowGenesis) June 28, 2023
The Blue-Chip NFT Projects Taking a Hit
The NFT market has been turned upside down, with Azuki’s Beanz collection receiving one of the toughest blows. A whopping 636 of its digital assets — comprising 3% of its entire stockpile — are now in NFT market liquidation.
Moreover, Bored Ape Yacht Club’s floor price sunk to 30 ETH on July 30, marking its lowest dollar value since august 2021 despite hitting a high of 150 ETH in its prime, with icons like Just Bieber paying six figures to accumulate one of the assets. However, the project has since rallied to a current value of 31.5 ETH, according to CoinGecko — Bieber is reportedly down over a million dollars.
Another NFT titan, one of which goes by the name Azuki, has also caught the short end of the stick. After leaving its collectors dismayed over receiving replicated artworks through its recent Elementals drop, the floor price suffered a massive decline, causing an uproar among community members, with some now demanding compensation for the Elementals assets which raised 20k ETH at launch.
For more information: ‘Azuki Implosion Continues Following Ill-Advised Elementals Drop‘
Other NFT projects facing a tremendous setback include Otherdeed, DeGods, Moonbirds and more. But, to leave on a positive note, there appears to be a silver lining behind the NFT market liquidation: the pace of sell-offs has rapidly been slowing down, and there is no longer an excessive amount of buried loans remaining.
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