The Second Flippening has occurred as BAYC holders dump their apes
With the crypto market in turmoil amidst the fall of the US-based exchange FTX and its devastating aftermath, CryptoPunks has overtaken the leading position in the NFT space from Bored Ape Yacht Club.
- CryptoPunks retakes the number 1 position as the most valuable NFT collection
- Bored Ape Yacht Club floor price dropped from 70 ETH to 59.7 ETH within days
In December 2021 Bored Ape Yacht Club (BAYC) became the most expensive NFT collection on the market. The floor price surpassed that of CryptoPunks, long thought to be the holy grail for all NFT collectors. However, with the downfall of FTX, many BAYC holders try to sell their collectibles.
Overnight the price has dropped significantly. On November 6 the cheapest Bored Ape would cost 70 ETH. This had dropped to 68 ETH three days later, but on November 10 the value of the cheapest BAYC plummeted to less than 59.7 ETH.
At the same time, CryptoPunks has seen much less price action. The floor price had been hovering between 65 and 67 ETH for a month, only to drop to 63 to 64 ETH amidst all the crypto turmoil.
Bored Apes have been number 1 for less than a year, and now CryptoPunks is back on top. Both Web3 brands are owned by Yuga Labs, which gave commercial rights for individual NFTs to the NFT holders.
Now, the Second Flippening has happened, but at the moment, there’s no time for celebrations.
FTX puts crypto markets in chaos
The American crypto exchange FTX has made a mess, and needs $8 billion to cover its debts. Binance CEO Changpeng Zhao had the idea to take over FTX. But he stepped away after taking a look at the financial mess at the exchange.
FTX CEO Sam Bankman-Friend already stated that he needs more capital to avoid bankruptcy. At the same time, venture capitals like Sequoia Capital have already marked their investments down to $0. This indicates that investors no longer have faith that FTX will recover from this.
As the turmoil rages on, the crypto markets have lost almost $200 billion in value. Bitcoin, the leading cryptocurrency, hit a low of $15,600. Only to bounce off that level and now sitting at $16,700. The price of bitcoin has not been this low since November 2020.
Solana feeling the FTX pain
Investments associated with FTX are potentially in trouble. Solana’s native currency SOL has been heavily affected by the fall of FTX, as the exchange was a major investor in the ecosystem.
As a result of all these problems, dapp activity on Solana is surging. Leading DeFi protocols like Saber, Raydium, Solend, and Orca have seen their activity more than double over the past 7 days. All of the DeFi platforms experienced a serious surge in activity on November 9.
This activity boost can mean that users have been swapping tokens, or they removed their liquidity from the decentralized exchanges. For more than a month, the number of Unique Active Wallets on Solana reached between 40,000 and 45,000, but on November 9 it peaked at 64,980 UAW.
Using the DappRadar Industry Overview we can see that these users moved value around. In the last few weeks of October, there was around $50 million in daily volume on Solana, but that became $363.7 million on November 9. The Total Value Locked (TVL) in Solana smart contracts has now dropped from $1.04 billion on November 6 to $347.44 million on November 10.
Keep an eye on the Solana action, you can leverage our Solana DeFi page to track its Total Value Locked. At the same time, make sure to follow the charts in the DappRadar Industry Overview to stay ahead on top of industry macro trends.
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