- BAYC & MAYC dropped heavily throughout the month with low trading activity.
- Mutant Ape Yacht Club (MAYC) floor price is now equivalent to August 2021.
- The community asked Yuga Labs if anything was being done about the situation.
The vast community of Bored Ape holders is worried about the future of the most popular blue-chip project in the world of NFTs. Internet rumors might have sparked some of the worries, but the evidence also lies in the numbers.
According to JBond, an intellectual property maximalist, a BAYC holder and an ambassador for the brand, there are five reasons for the plunge in Yuga Labs-related products. Firstly, there are three reasons pointed out by Hunter Solaire, an independent Web3 strategist:
- Apecoin’s unlock versus burn ratio – as the unlocking schedule suggests, gradual unlocking events occur once a month. In further detail, the next unlock event on July 17th, 2023, will see 1.56% of the total supply added to the circulation.
- Fading status symbol – while previously Bored Apes were often purchased to show status, in volatile market conditions, crypto enthusiasts turn to CryptoPunks for showing status in the crypto community, while for social engagement, Seals, Beanz, and Y00ts are often chosen over the Bored Apes.
- No giveaway events – according to Hunter Solaire, the main competitors of Bored Apes are constantly organizing free giveaways and contests. At the same time, Yuga’s NFT collections have cooled down in such community-oriented activities.
Greg Solano Calms the Worried Ape Community Down
JBond, the member who posted the thread on Twitter, added two more reasons for the continuous decline of the floor prices for Bored Ape Yacht Club-related NFT projects. JBond added the issue of limited liquidity, which suggests that larger investors tend to choose projects with “upcoming free money” or hold Ethereum (ETH).
Another issue is Blur.io farming – the newly-emerged marketplace gives out juicy rewards for trading Bored Apes. Still, the trading volume acquired in this way might not help maintain long-term prices of the involved non-fungible tokens.
Greg Solano, a.k.a Crypto Garga, one of the co-founding members of Yuga Labs, saved the day after one BAYC holder asked if “anything at all” was being worked on for the apes. In response, Crypto Garga uttered: “No, I’m just bald, tired and in meetings 24/7 for no reason”.
Ultimately, the co-founder’s sarcastic remark put a smile on many of the apes’ faces and gave some comfort to those expecting an early Bored Ape demise. While the BAYC NFT floor price is yet to recover, new projects by Yuga are likely to relieve apes’ boredom for some time at least.
On the Flipside
- Yuga Labs NFT projects took up more than half of the overall trading volume in the sector in March 2023.
- The Web3 company is developing several metaverse projects simultaneously, which could drastically change the situation.
Why This Matters
Yuga Labs is one of the largest Web3 enterprises in the field, once valued at $4 billion.
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