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High-value NFTs face significant downturn as more than 1,200 liquidations impact the market.
The NFT market faced a considerable disruption in the last three days, with more than 1,200 NFTs being liquidated due to an unprecedented decline in the floor price of various notable or ‘blue-chip’ NFTs.
Information from the NFT analytics platform, Snow Genesis, indicates that numerous NFTs utilized as collateral for loans are in jeopardy of liquidation. While some of these debts have been settled, a number of NFTs have already been put up for auction. The table below displays the latest NFT liquidations from Snow Genesis as of the time of this report.
Source: Snow Genesis
CirrusNFT, Wumbo Labs, observed that various investors who secured loans against their blue-chip NFTs, including Azuki, CloneX, MAYC, and BAYC, were affected during this timeframe. The Beanz NFT collection experienced the highest level of liquidation, with 636 of its NFTs—3% of its total supply—being impacted.
Cirrus remarked that the speed of these liquidations was concerning, noting that the daily average for the previous year ranged between 10-15 NFTs. However, he added:
“The positive aspect is that the rate of liquidations has significantly decreased over the last few hours and there aren’t a large number of underwater loans remaining.”
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NFTs floor price declines
In the past week, the floor price of numerous NFT collections experienced a drastic drop, despite the upward trend in the broader cryptocurrency market.
The floor price of Bored Ape NFTs fell below 30 ETH on July 2, marking its lowest point since October 2021, before rebounding to its current value of 31.5 ETH, as per Coingecko data.
At its highest, Bored Ape NFTs were sold for over 500 ETH, with several high-profile celebrities, including Justin Bieber, spending more than $1 million on one of the collections.
Azuki also faced significant losses for its holders following the problematic launch of its Elementals collection. The floor price of this collection dropped by over 20%, with community members suggesting legal action against its founder, Zagabond, for 20,000 ETH.
Additionally, other blue-chip NFT collections such as DeGods, Pudgy Penguins, Azuki Elementals, BAKC, and Moonbirds also suffered considerable declines in their value during the reporting period.
The post Blue-chip NFTs hit hard as over 1,200 liquidations rock market appeared first on CryptoSlate.
