Bitcoin Ordinals Shine Through, CryptoPunks Stand Tall While NFT Market Sees Turmoil

2023/03/17 10:55:56

Date: March 10th - March 17th

What a shaky market this week! In this recap, we'll delve into all the essential developments in the NFT space over the past week, ensuring you stay informed and up-to-date on the latest happenings.. NFT is all about attention, and attention shifts quickly! There are tons of updates and excitement to share with you all on this week’s NFT Market Recap. We hope you enjoy :)

📈Market Overview

Key Takeaways

The NFT market is in turmoil, but CryptoPunks stand tall amid industry-wide decline.
Moonbirds, CloneX, and Doodles saw particularly weak performances, with each project declining by approximately 30% over the past week.
Trading volume across the NFT market also took a hit, adding to the gloomy outlook.
The art NFT sector experienced a huge drop because of the sell-off of VV Checks by Jack Butcher, which dropped over 30% in the past week.

🗞️Major NFT Headlines

The full collection of Yuga Labs Bitcoin Ordinal NFT TwelveFold is now revealed, some were disappointed about the art.
DigiDaigaku’s Limit Break acquires FreeNFT, a platform for free NFTs.
On Chain Monkey Introduces Dimensions, a 3D Collection on Bitcoin.
Instagram is pulling back on digital collectibles and NFTs in order to focus on other monetization products and opportunities
RTFKT(CloneX’s parent company) gave a sneak peek of its upcoming forging event and a sneak peek of the Murakami "Animus" in a recent tweet.
The Pokémon Company is currently looking to hire someone to bring "deep knowledge" in web3, NFTs, and the metaverse.
Doodles is hosting a new competition throughout the month of March, offering a pair of "gold socks" to the winners.

💡Thoughts for Alpha

The past weekend felt like a year, with the drama surrounding Silicon Valley Bank rattling the crypto and NFT space. Stablecoin de-pegging, panicked markets, and statements from founders about exposure to the bank filled the timeline. Although nerves seemed to calm on Monday, it was yet another moment of fear in a brutal year.

Reactions to the fallout included concerns about extreme volatility and the need to zoom out unless actively trying to day trade the market. The short-term still seems very bumpy, but the long-term outlook for crypto appears stronger than ever. From an NFT perspective, the weekend served as a reminder of how NFTs can quickly turn illiquid in times of macro panic. It was observed that CryptoPunks has become a safe haven during such times, reinforcing their position as a top-tier NFT project.

Although the situation seemed to stabilize, there are still many unanswered questions about the fallout's impact on the broader crypto and NFT ecosystem. Following the news of Instagram's decision to discontinue its NFT initiatives, Market participants are now watching closely to see if the industry is truly out of the woods or if further challenges lie ahead.

Explaining the drop in Doodles’ floor price

Doodle made another questionable move this week by announcing the “gold socks” competition:

Despite raising 50 million dollars from venture capitalists, Doodles' floor prices have not been favorable for its holders compared to its PFP competitors. This week, Doodles faced criticism after announcing a "gold socks" competition that drew significant negative feedback. The Doodles team's actions have led some to question whether they prioritize the interests of their holders.

Disappointment has mounted, as recent initiatives seem to have no direct impact on floor prices. With the founder now aiming to make Doodles "bigger than NFTs," this shift appears to undermine the interests of NFT holders, who have been the project's staunchest supporters and financial backers. Such a move can be seen as ungrateful and betraying the trust of those who contributed to the project's success.