The hype surrounding the Bored Ape Yacht Club was in full swing earlier this year as celebrities "aped into" the pricey Ethereum NFT collection. Some people have even used their Apes to design products, themed restaurants, live performances, and other things.
However, amid the cryptocurrency bear market, the price to join the exclusive club has been falling lower and lower in recent weeks. A "floor" Bored Ape, such as the one that singer Justin Bieber paid $1.3 million in ETH for in January, now sells for a fraction of that price.
According to NFT Price Floor, the floor price is approximately 58.2 ETH, or roughly $69,800. The floor price fell below $60,000 for the second time this month on Monday, but it rose throughout the day on Tuesday.
The Bored Apes have had a difficult November, with the floor price in USD falling 33% since the beginning of the month. The collapse of popular crypto exchange FTX last week had an obvious impact on the market, driving down crypto prices and affecting NFT valuations, but other notable projects aren't suffering as much as the Apes.
Yuga Labs' CryptoPunks, another "blue chip" project, has seen its floor price fall by 23% this month to around $79,800 (66.5 ETH) in November. Its ETH price today is remarkably similar to what it was on November 1; the only difference is ETH's USD value. On the other hand, the price has fallen from 66.6 ETH to 58.2 ETH, with a low of 48 ETH on Tuesday morning.
Due to the hype surrounding the debut of land plots for Yuga's Otherside metaverse game, the Bored Ape floor peaked at around $429,000 (152 ETH) in late April, ahead of the crypto market crash. Owners had just cashed in on ApeCoin's March launch and were set to receive free Otherside land, making the NFTs appear to be endless gifts.
However, the crypto crash resulted in a rapidly fading speculative frenzy around NFTs, driving Bored Ape prices significantly down over the last six months. In terms of USD, today's entry price for a Bored Ape is approximately 84% less than it was at its peak in April.
We've yet to see any recent examples of celebrities flooding into the project, despite a wave of buys in late 2021 and early 2022 that included Jimmy Fallon, Steph Curry, Madonna, Eminem, Gwyneth Paltrow, and Snoop Dogg.
In retrospect, the price drop has made some of the seven-figure Bored Ape purchases stand out even more. One notable example is musician Justin Bieber's January acquisition of an Ape for $1.3 million (500 ETH)—a purchase that crypto influencers questioned at the time, claiming that he overpaid for an Ape with very common traits.
A comparable Ape could sell for nearly one-ninth of that price in ETH today or nearly one-ninth of the price in USD. Even though holders such as Eminem and Snoop Dogg have proceeded to use their Apes prominently since Bieber's purchase, the celebrity Bored Ape boom may have peaked with Bieber's purchase.
However, falling prices appear to be boosting sales: according to CryptoSlam data, $6.5 million in Apes were sold on Tuesday, a 135% increase over the previous day's sales.
The floor price tends to fall as owners become concerned about NFT sell-offs from BendDAO, a lending service, but then sales rise, and the floor price recovers as people buy up the NFTs, according to Punk9059, director of research for NFT startup Proof.
What do you think of Justin Bieber's investment in the NFT? Do you think other celebrities will continue investing in NFTs? Let us know your thoughts by sharing this article on social media.
*Article Photo Credits to it's rightful owner*
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