- The floor price of the Bored Ape Yacht Club rose from approximately 5 ETH to over 10 ETH within a month.
- Yuga Labs CEO Michael Figge said that the collection has continued to be heavily held even during market downturns.
- As NFT lending activity rebounds, prices of Pudgy Penguins and other blue-chip NFTs have also risen.
Over the past month, the floor price of Bored Ape Yacht Club has doubled, rising from approximately 5 ETH to over 10 ETH, as traders have shifted back toward blue-chip NFT. Funding has begun to rebound after years of harsh capital drawdowns.
Meanwhile, ApeCoin also rebounded significantly, rising from below $0.10 to approximately $0.16, with a notable increase in trading volume.
Yuga's CEO said the market is severely oversold.
Yuga Labs CEO Michael Figge believes this recovery has less to do with a return of hype and more to do with the market ultimately correcting for excessive selling.
Figge said that during the NFT crash, one key metric remained surprisingly strong: holder engagement.
Despite months of sharp price declines in collections, the number of collectors for major collection series has remained relatively stable. In other words, many long-term collectors have refused to sell, even as collection valuations have plummeted.
“It’s been overhyped,” Figueres stated frankly. To be honest, the data also supports this view.
Other blue-chip NFTs are also rising.
Bay Area is not the only one rebounding. In recent weeks, several other well-known NFT projects, such as Fat Penguin, have also seen stronger floor prices and renewed market activity.
After months of stagnation, the NFT-backed lending market is also beginning to recover. This is crucial because lending activity often indicates that traders are once again willing to treat NFTs as collateralizable digital assets, rather than purely speculative collectibles.
The return of liquidity from blue-chip issuers is quietly becoming one of the most notable shifts in the market.cryptocurrencies now.
Decentralized finance issues may help NFTs.
Interestingly, Fig also noted that internal security issues are becoming increasingly serious. DeFi is part of the renewed interest in NFTs.
Over the past year, protocol vulnerabilities, bridge attacks, and smart contract exploits have occurred frequently, and some traders appear to be showing increasing interest in assets more closely tied to community identity and cultural values, rather than purely financial engineering.
The price volatility of BAYC NFTs may still persist, but it will not vanish overnight due to the liquidity pool drying up. The significance at the level of social ownership still far exceeds the understanding of many critics.
NFTs are attempting to slowly rebuild.
There has not yet been a serious call for a full recovery of an NFT supercycle. Trading volumes remain far below the frenzy peaks of 2021 and 2022, and most collections’ prices are still well below their historical highs.
But doubling within a month, while management has maintained a relatively cautious stance and avoided loudly proclaiming an “NFT summer,” may make this rebound more credible than many of the previous false attempts.
To be honest, the fact that blue-chip NFTs are regaining momentum after being declared dead every few months for years is becoming increasingly hard for the market to completely ignore.