Why are NFT Prices Crashing? Azuki Plummets 11% and Bored Apes Falls 16% – Here's What You Need to Know.
The NFT market has recently witnessed a price decline, causing concern among investors and enthusiasts. Despite not entering a new cycle, several prominent NFTs have experienced significant price declines within the past few days.
One notable example is the Bored Ape Yacht Club (BAYC), whose decline in the NFTs floor prices can be attributed to the community backlash that followed the Azuki Elementals airdrop last week.
The Bored Ape Yacht Club (BAYC) has encountered a loss of 11%, causing its value to drop below 30 Ether. Similarly, the Azuki collection has also witnessed a 16% dip, pushing its value below 6 Ether.
The decline in NFT liquidity has become a concerning trend in the past three months. Data from Dune Analytics reveals a significant decrease in daily trading volume, with a decline of over 50% in June alone.
This lack of interest and activity has become a challenge for the NFT industry. It has prompted prominent NFT marketplaces to employ various incentives to attract users and stimulate platform trading.
The data from Dune Analytics highlights a downward slope in daily trades over the past three months. In March, the global daily volume of NFT trades reached approximately $60 million, but by June, it had declined to an average of $20 million per day. Similarly, NFT trades decreased from around 44,000 in March to approximately 25,000 in June.
Last week has proven challenging for Azuki, one of the most successful NFT collections in 2023. Azuki recently held a highly anticipated Ethereum NFT drop for its new Elementals profile picture (PFP) collection on June 27.
The drop consisted of 10,000 NFTs available for purchase through a Dutch auction format, starting at 2 ETH ($3,800) per piece. The sale was an immediate
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