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Azuki NFT prices experience a 65% decline post-Elementals drop

TL;DR

  • Azuki NFT prices dropped 65% since the Elementals collection launch in June. Trading volume also fell by 78%.
  • Despite controversy, the Elementals drop netted Azuki $51 million in sales.
  • Azuki’s future in the NFT market is uncertain due to significant price and volume drops, despite notable sales.

Azuki, a prominent entity in the Non-Fungible Token (NFT) market, has witnessed a significant decrease in the prices of its NFTs.  Data from Nansen, a blockchain data and intelligence provider, reveals that Azuki NFT prices have dropped by 65% since the launch of the Elementals collection in June. On June 26, a day before the Elementals drop, Azuki prices were around 15 ETH ($28,250). However, in the following month, the floor price dropped to 5 ETH ($9,724) as of July 27. Alongside the price drop, Azuki’s trading volume also experienced a 78% decrease this month.

The Elementals drop controversy

The Elementals collection, launched by Azuki on June 27, catalyzed the price drop. The collection comprised 10,000 anime-inspired avatars, which were airdropped to existing Azuki brand holders.

According to Yau Teng Yan, the head of NFT research at Delphi Digital, there are concerns surrounding the launch of the Azuki Elementals. Yan questions the potential for a cash grab and the resemblance of the Elementals to the OG Azukis. Additionally, Yan raises doubts about the justification for the high prices of OG NFTs and the actual benefits of owning one. These concerns are worth considering as the NFT market continues to evolve and expand.

An additional 10,000 were intended for sale, but the collection sold out before the public could purchase an NFT. Azuki acknowledged the missteps in the launch, stating, “we missed the mark.”

Sales despite controversy

Despite the controversy surrounding the Elementals drop, Azuki managed to net $51 million in sales. This marked the highest trading volume for the collection since May 2022. However, the success of the sales did not translate into sustained interest in the Azuki NFTs. The significant drop in prices and trading volume in the weeks following the Elementals drop indicates a cooling of interest in the Azuki brand.

Screenshot 2023 07 27 at 7.22.30 PM
Source: The Block Crypto Data

The Azuki collection is highly regarded in the NFT market and is commonly used as collateral in the growing NFT lending industry. However, the recent incident has caused many collectors to sell their Azuki, leading to a ripple effect throughout the lending market.

Nonetheless, the crypto market, meanwhile, has remained relatively unaffected by the NFT drama. At the time of press, Bitcoin is trading at around $29,205, declining by 0.31% in the last 24 hours.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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