When people look at non-fungible tokens, they often see an investment opportunity for a quick flip. Very few collections can prove useful for that purpose, and it seems CryptoPunks may not entice too many people. While its price floor remains high, there has been an ongoing decline across the most prominent metrics.
CryptoPunks Price Floor Keeps Dropping
One of the crucial aspects of investing in NFTs is figuring out whether projects have long-term viability. Profile picture projects are now necessarily known for their long-term appeal, although some notable exceptions exist. CryptoPunks is one such collection, as it has surpassed 609,000 ETH in overall trading volume. It remains the most prominent collection for trading volume in the industry today, even if the metrics indicate that it may change soon.
While analyzing the price floor of CryptoPunks, it becomes apparent things are not looking too great. Volatile cryptocurrency prices are problematic for NFT price floors and affect large and small collections. Even CryptoPnks has a rather fluctuating price floor in recent months, yielding a substantial decline. More specifically, the project had a price floor of over 100 ETH in early October of this year.
Fast forward to today, just two months later, and the price floor is 60.95 ETH. That is still a massive amount of money for most people, yet it shows there is seemingly less demand to pay top dollar for CryptoPunks today. It is not for lack of mainstream attention the project has generated, but rather seems a victim of a lack of utility. Now, everyone is accustomed to this collection, and the novelty has worn off.
Moreover, the CryptoPunks price floor has retraced by over 30.7% in the past month alone. Although crypto markets have been very bearish in the past few weeks, that is often a bullish sign for NFT collections. A lower Ethereum price can raise price floors up, yet the floor in ETH continues to come down rapidly. This week’s 14% decline isn’t helping matters much either, making one wonder if the momentum can turn around.
Trading Volume Keeps Dropping Too
Another worrisome aspect of investing in CryptoPunks is the NFT collection’s trading volume. OpenSea is the primary marketplace for this collection, yet it appears the momentum has dropped off across the board. While NFT collections see trading volume fluctuations every day, CryptoPunks has a weekly decline of nearly 39%. That is a bit surprising, considering the price floor has come down significantly.
One would expect traders and speculators to take advantage of the lower price floor. However, people are either unwilling to spend 60 ETH on a CryptoPunk today or expect the floor to drop even further. As the CryptoPunks trading volume keeps drifting lower, it will become more challenging to sustain the current price floor too. It is tricky for investors but may warrant not investing now.
Interestingly, there are still relatively high sale prices for some CryptoPunks NFTs. Just this week, one sold for nearly 400 Ether. However, someone also sold one for 57 ETH, almost 10% below the current price floor. The average sale price for this week hovers near 86 ETH, although that value may come down depending on the trading volume and price floor evolution.
Looking to advertise? We will gladly help spread the word about your project, company, or service. CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected]