Last week, the prices of Bored Ape Yacht Club (BAYC) NFTs plummeted to their lowest point since late 2021, leading to significant losses for holders. The floor price of BAYC dropped below 34 ETH ($64,000), and this decline coincided with a period of heavy selling. Some attributed the crash to the actions of Jeffrey Huang, also known as Machi Big Brother, who sold off 50 apes. However, Lior Messika of crypto venture firm Eden Block believes that rampant speculation is the main driver of the decline in BAYC prices. He argues that the NFT market currently rewards traders and speculators rather than creators utilizing the underlying IP. Messika also points to the influence of Blur, a platform dominated by pro traders, which has reshaped the dynamics of the NFT market. He suggests that the market is now driven by the fear and greed of a few traders, making it difficult for collectors to navigate this new reality. Despite the price pressure, Messika believes that Yuga Labs, the creator of BAYC, should focus on building a strong community and providing unique experiences to ensure the long-term success of their collections.
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