Bored Ape Yacht Club NFTs doubled in floor price over the past month as traders rotated back into higher-risk assets.
Crypto News
Bored Ape Yacht Club (BAYC) non-fungible tokens (NFTs) have posted a sharp recovery over the past month, with floor prices climbing from roughly 5 Ethereum (ETH) to over 10 ETH. ApeCoin (APE), the ecosystem’s governance token, rose from below $0.10 to around $0.16 over the same period, with trading volumes increasing alongside the price.
Recovery From a Period of “Disproportionate” Selling
Figge described the rebound as a correction from a period of excess selling rather than a new wave of speculation. “A cynic will say prices doubled and the unique holder count didn’t double,” he said. “But that’s really just recovery from a period where things fell disproportionately.” He added that the social layer that originally drove BAYC’s growth had not received enough attention in recent years, and that Yuga Labs has since refocused on community-building, hosting more than 30 in-person meetups globally over the past month.
The broader crypto market has also rotated toward higher-risk assets during this period. CoinDesk’s MemeCoin Select Index ranked among the best-performing digital asset sectors in the week ending May 9, as traders moved away from more defensive positions in decentralized finance (DeFi). A series of protocol exploits and declining yields across DeFi lending platforms have reduced confidence in that sector over recent months.
Figge said ongoing security vulnerabilities in DeFi have prompted some market participants to reassess where they allocate capital. “With one well-planned hack, you can lose it all,” he said. “That has to get solved in DeFi, but it’s definitely made people rethink the idea that it’s the only use case.” He added that NFTs offer a different kind of value tied to community rather than yield alone.
NFT Financial Markets Pick Up
Activity in NFT-backed lending has also increased. A $2.8 million loan backed by a CryptoPunk NFT circulated widely on social media in the week ending May 9. The lender is set to collect approximately $138,000 in interest over 90 days, a transaction traders described as one of the largest NFT-backed loans on record.
Pseudonymous NFT analyst “Van” published an essay on May 3 arguing that institutional engagement with blockchain-based art has continued since the 2021 speculative peak. The essay pointed to acquisitions and exhibitions at the Museum of Modern Art (MoMA), Centre Pompidou, and the Los Angeles County Museum of Art (LACMA) as evidence. “The speculation died, but the medium survived,” the essay stated.
The recovery extends beyond BAYC. Pudgy Penguins has also posted gains in recent weeks. Traders are also watching OpenSea, the marketplace most associated with the 2021 NFT boom, amid long-running speculation about a potential token launch that could reignite activity on the platform.
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