We investigate what is driving CryptoPunks to the top of the Ethereum NFT Collectible Charts
Last week DappRadar started reporting about the rise in activity on CryptoPunks, one of the first NFT collectibles in the decentralized application (dapp) space. It looks like this surge in activity has not only continued but even further increased.
The long-term data seems to confirm the current momentum. Both user activity measured in daily active users (DAUs) and transaction volumes (in ETH) are currently spiking. Both have reached heights during the past 7-days not seen before.
So what just happened?
Let’s start with a couple of interesting data points. First, the minimum price for acquiring a CryptoPunk rose from $160 to $200 per Punk over a week.
Second, the amount of Punks available for purchase on the open market shrank from roughly 720 to 660 at the time of writing. Meaning the dapp has experienced a price increase of more than 20% and a reduction of CryptoPunks available on the market by roughly 10%.
Furthermore, it looks like the 4 highest ever transactions were executed over the past 10-days. Meaning CryptoPunks whales showing up and buying some of the most valuable/iconic Punks of the series.
Punk #6487 was sold on Sunday 25th of May 2020 for a whopping 100 ETH ($21k). This sale marked the highest ever executed transaction for a CryptoPunk.
Punk #8348 was sold on Wednesday the 20th of May 2020 for a cool 85 ETH ($18k). Before Punk #6487 sold this Punk held the coveted highest price sold award.
Punk #2386 followed the next day on Thursday the 21st of May 2020 for 77 ETH ($15k).
Both transactions were preceded by Punk #4513 selling on Saturday the 16th of May for 60 ETH (approx. $12k)
This then poses the question of how prices are determined in the CryptoPunks universe. Is it a pure game of supply and demand? Or is there any logic attached to pricing?
A good starting point is the attributes a CryptoPunk carries. Does rarity of attributes carried by a Punk then create a higher price?
This helps to explain the high prices for Punk #4513 and #2386. Punk #2386 belongs to the category of the apes, in which there are only 24 or 0,24% of the total supply of 10,000.
Punk #4513 unites two other rare attributes/categories. #4513 is a Zombie carrying a Beanie. There are only 88 Zombies (0.88%) and only 44 of all Punks in total are wearing a Beanie (0.44%). Conclusion: rarity is definitely a contributing factor in pricing.
However, Punk #8348 provides has a different story and not such a clear cut reason for its value.
Only one of the Punks attributes (Buck Teeth) makes it into the Top 10 list of rarest attributes. So, how did this Punk manage to pull off the highest ever sale? The answer lies in the number of attributes. Punk #8348 is the only Punk around owning 7 attributes at once. Therefore, this Punk is unique. All other Punks have less than 7 attributes. The uniqueness seems to determine the high price.
CryptoPunks record breakers
Having achieved their highest sale value some 5 days ago (20.05.20) things only seem to be getting more and more interesting for LarvaLabs.
On the 25th May, 2020 Punk #6487 sold for 100 ETH, or just under $21k. This eclipses the previous highest sale by almost $3k.
Interestingly, at the time of writing, no attributes are listed for Punk #6487. From appearances, the Punk appears to be a very stripped back character with no discerning features with the only information given that it is 1 of 3840 female punks. It would appear that the fact the Punk has no attributes is what makes it so valuable. For further info on the buyer you can see their portfolio here.
On another note, it looks like Punk #4513 has gone right back on sale for an eye-watering 500 ETH (approx. $100k). It remains to be seen if such a price can be achieved in the short term. Both other Punks (8348 and 2386) have not been put back on offer for now.
Would you be willing to shell out $100k for a unique Punk? Perhaps not today, but what if a world described in Ernest Cline’s “Ready Player One” does become reality sooner than later?
What if a change in habits and circumstances does confine us to a world in the digital space? Do digital assets all of a sudden deserve such valuations?
Stay tuned. We will continue watching this space. Make sure you bookmark DappRadar and sign up to our newsletter below to get updates direct to your inbox.