The Ethereum floor price of the largest NFT collection has reached its lowest point since the beginning of the year.
The Ethereum floor price of the Bored Ape Yacht Club (BAYC) NFT series has fallen to its lowest level since the beginning of the year, amidst a continuing NFT market decline and broader cryptocurrency market crisis.
The floor price of Bored Ape Yacht Club NFTs has plunged to levels not seen since January 2, 2022, at 65.68 ETH. Since May 1, when it reached an all-time high of 153.7 ETH, it has been declining, according to CoinGecko statistics.
BAYC is the largest NFT collection by market capitalization, with 656,800 ETH — slightly ahead of its closest competitor, CryptoPunks, which has a market cap of 655,000 ETH and a floor price of 65.5 ETH.
However, there is some good news for Bored Ape owners. As a result of Ethereum’s shifting pricing, the BAYC floor price is now approximately $114,135.00; much lower than at the beginning of the year, when it was just under $256,000, but higher than the June low of just under $87,000.
BAYC faces liquidations on BenDAO
Due to the collection’s decreasing floor price, Bored Apes obtained via the peer-to-peer lending platform BenDAO might be liquidated.
BenDAO allows users to borrow up to 40 percent of an NFT’s floor price. If the NFT’s floor price falls to a level where the NFT-backed loan’s “health factor” is less than 1, the NFT is auctioned off for 48 hours and sold to the highest bidder if the loan is not repaid.
Arcade, an NFT liquidity provider, has announced that it is enabling $25 million in loans secured by NFTs such as Bored Apes. At Consensus 2022, Arcade CEO Gabe Frank speaks with Decrypt’s Jason Nelson.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.