Are CryptoPunks, Meebits, CloneX, and MintVial taming the grizzly bear market? Find out what is happening and how you can be part of it in this report.
The Flash Dapp Report for June 2022 shows promising numbers for popular blue-chip NFT collections defying the grizzly bear market. Collections like CryptoPunks, Meebits, and CloneX – MintVial saw a floor price increase of at least 40% during the weekend. They are showing that the blockchain industry is more than just cryptocurrencies.
- As the underlying prices of cryptocurrencies are dropping, NFTs are becoming cheaper and more attractive for first-time buyers.
- On Saturday, ETH went from 1080 to 897 = 17% down and BTC from 20,433 to 17,760 =13%
- Floor prices for Blue-Chip NFT collections rose by at least 20%
- CryptoPunks and Meebits saw trading growth of 683% and 360%
Last week was particularly hard for the crypto-industry at large. On Sunday, June 19th, Bitcoin dropped below $20,000 and was approaching the $17,000 mark, while Ethereum dipped below $900. Many NFT collections experienced a floor price drop of 20% since early June, and Defi blockchains pulled back by around 30%.
This scenario is not strange to us as we have already witnessed similar bloodshed before in our January Industry report. Back then, Ethereum had lost 48% from its peak in November, and the TVL for many blockchains decreased by approximately 30%, painting a dark picture for the industry.
NFTs increase value while BTC and ETH plunge
Much like the ‘crypto-winter’ of January, we saw a silver lining. Many NFT collections have successfully sidestepped the dramatic drop in value and thrived. Back then, we explained how despite the almost 50% drop in the price of Ethereum, BAYC floor price in USD had successfully doubled, exceeding expectations.
The same pattern was observed in many ‘blue-chip’ NFT collections over the weekend. Many collections with a proven track record of storing value saw a jump in trading frequency because with ETH prices going down, there are lower economic entry barriers.
The CryptoPunks collection, which had barely broken daily trade count into double digits in early June, had ninety trades during both weekend days.
While not as spectacular, Meebits shows a similar resurgence where the collections went from an average of under five trades to twenty trades each day over the weekend.
In summary, this has been a trade count growth week-over-week of 683% for CryptoPunks and 360% for Meebits.
Blue-chip collections grow their floor price by at least 20%
This increased trading has bolstered the floor price for many blue-chip collections like BAYC, RTFKT – CloneX MintVial, Meebits, CryptoPunks, and Doodles. All of these collections experienced a significant week-over-week floor price growth of at least 20%.
Leading the pack is Meebits, which saw a floor price growth of 76%, followed by Clone X Mintvials with 67%, while Doodles and CryptoPunks both grew by 44% and 43%, respectively.
Why is this happening?
NFTs became a part of the cultural Zeitgeist last year and, for the first time, have broken the Google trends over crypto in December 2021. NFTs continue to dominate the Google trends over crypto, except for a short spike in crypto searches due to the current meltdown.
Non-fungible tokens (NFTs) are very popular today, drawing the attention of many to their potential as financial assets. We have previously covered this phenomenon in detail in our February Report, and here is a brief summary:
1. Potential buyers who were previously priced out of these collections saw a first-time buying opportunity. The cheaper things are, the more demand there is for them.
2. Many blue-chip NFT collections have evolved into a cultural phenomenon beyond the simple Jpeg. Many see their value in the utility for things such as pint passes, game assets, and more.
3. Art is a long-standing investment asset, and it has been becoming increasingly popular among wealth managers and many consulting service providers since 2011. NFTs being art pieces themselves, function by the same logic.
Despite the FUD’ing over the supposed collapse of the crypto-industry and especially NFTs, the crypto industry keeps reinventing itself against the odds. After a continuous month of market turmoil, many NFT blue-chip collections have seen a resurgence in trading fuelled by the depreciation of the underlying blockchain tokens.
Some collections like CryptoPunks have seen an increase of 683% in trading activity week over week. This trading activity has seen many blue-chip collections appreciate by at least 20%. Collections like Meebits and CloneX MintVials have appreciated by 76% and 67%, respectively.
This resurgence is like a flashback to the crypto winter of January 2022, when NFTs largely sidestepped the decline of other crypto assets.