- Stats reveal BAYC is losing the charm
- NFTs set to be liquidated
- Users blame lawsuits for the drop in the price of NFTs
The number of BAYC NFT buyers has fallen short of its all-time high, recording one of the lowest in history. According to data from the analysis website, Cryptoslam, the total number of real buyers of the NFT has taken a beat to register at 263 for August. Similarly, the website claims that only about 438 transactions tied to the NFT were carried out in the same time frame. These figures represent the second lowest turnout for the high flying NFT since it made its debut in the market last year in April.
CryptoPunks and BAYC NFTs set to be liquidated
Since the market started to witness the presence of bears at the start of the year, NFTs have also suffered the same fate. In putting it into perspective, the average transaction of the BAYC NFT fell from a high of over $312,000 in April to a little above $100,000 last month.
May was another good month for the project as it registered 3,550 buyers, which transacted more than 9,200 times to end the month. More than $55 million of NFTs are on the verge of liquidation. Most of these NFTs are BAYC and CryptoPunks, as users have used the collectibles for collateral in Ethereum loans. The primary reason for this liquidation is the drastic fall that the prices of these NFTs have registered.
Users blame Yuga Labs’ lawsuit for the drop in the price of NFTs
According to several sources, one reason for the drop in the price of the NFTs and patronage is the class action lawsuit that the company has been defending. Some users sued the company responsible for both NFTs for hyping the price of the NFTs before selling them to users on the platform. Another reason for the continued patronage drop is the discord’s security.
In the last six months, hackers have gained backdoor entrance into the discord group and used several phishing techniques to acquire prized NFTs illegally. Since its inception, the total number of NFTs the company has sold is more than $2.4 billion, which in this present market period is about 850,000 Ethereum. These drops in prices and patronages have seen traditional NFT marketplaces, including OpenSea, register a drop in users.