In the past, the NFT market often weathered major market storms better than cryptocurrencies. As blockchain data company Nansen observed earlier this year, NFTs demonstrated an inverse correlation with the valuation of coins.
This trend, however, is being tested as the NFT market experiences a major crash. Over the past seven days, Bored Apes Yacht Club lost over 54%, CryptoPunks dropped 29%, and Otherside NFTs, which enjoyed the most successful launch in the history of NFTs less than two weeks ago, fell 86%. The earthquake brought floor prices to relatively modest levels, with Otherdeeds trading for under 3 ETH and the cheapest Bored Apes costing 98.8 ETH, down from an all-time high of 153 ETH on May 1.
In other signs of trouble, $APE, the governance token backing the BAYC, fell alongside other tokens to lows of $5.31. At the time of writing, it’s on the rise and at $9.11, but even that is 76% below its all-time high of $39.40.
The crypto market crash, initiated by the depegging of Terra’s algorithmic stablecoin UST, drove the crypto community into an anxiety bordering on despair, with six suicides confirmed, thousands of people pushed underwater, and major institutions holding Bitcoin, including Tesla and MicroStrategy, with notable losses.
Despite that atmosphere, many NFT collectors remained calm. Some have continued purchasing new artworks, while others cherished those they have already collected.
Meanwhile, Madonna partnered with Beeple to release a new NFT collection called Mother of Creation, a triptych featuring explicit animations of the pop legend giving birth to Technology, Evolution, and Nature. The proceeds from both primary and secondary sales are to be transferred to three non-profit organizations supporting struggling mothers.
