NFT Bored Ape Yacht Club (BAYC): The Game Over?

When will the haemorrhage affecting cryptocurrencies and NFTs stop? Because recently, we only talk about liquidations. After a bloody Coin Glass report for crypto traders, it’s NFT holders’ turn to liquidate. And those who have invested in the Bored Ape Yacht Club are risking a lot.

The BAYCs are doing badly, imminent liquidation?

At the beginning of June, we reported here on that the most famous NFTs have lost their best. The Bored Ape Yacht Clubs, for example, were selling for -53% off their original value. CryptoPunks and Mutant Ape Yacht Club have also had their prices halved.

Recently, the presses echoed an 80% drop in BAYC prices.

Consequence: a dozen eponymous NFTs purchased with money borrowed from BenDAO risk liquidation. As a reminder, BendDAO is a lending service peer to peer allowing the borrowing of ethers against NFTs. Thanks to this device, the holders of BAYC arrogate the right to contract a loan of 30 to 40% of the floor price of the collection.

But as this floor price went down to 70 ETH, these individuals fell into the “danger zone” of the platform.

Currently, approximately 45 BAYC NFTs, out of the 275 linked to loans on BendDAO, are at risk of liquidation. In the absence of payment, auctions will be organized to decide their fate. To say that they represent approximately 5.3 million dollars.

All those monkeys close to liquidation on BendDAO. Auction soon! “, published Pete Fogden on Twitter 3 days ago.

On the same day, NFTStatistics.eth shared data for 19 MAYCs. Like what, BendDAO also has influence over the holders of this collection.

There are now 19 mutant monkeys for sale in BendDAO’s auction, including some beauties. M2 horns has an offer higher than the floor price. Gold grill has offers below. A few of them still have no offers. Bids must be within 5% of the floor price of the collection, even if it is very attractive. »

NFTs disabled by Ethereum?

As you know, most NFTs are on the Ethereum blockchain. However, the second largest cryptocurrency is also suffering from the bear run. As of this writing, CoinGecko was showing ETH price at $1,570.36, down 18.9% 7-days and -51.3% year-over-year. So, we are far, very far, from its ATH in November when the coin traded at 4,815 dollars.

Evolution of the price of Ethereum (ETH) over 1 month – Source: CoinGecko

What makes the floor price of 67 ETH from the Bored Ape Yacht Club does not help matters for their holders. This is 30% of ATH from last May, where they were selling at 153.7 ETH.

With this price, a BAYC is only worth $105,000 right now. As a result, the NFTs that served as loan collateral on BendDAO are almost worthless. And if the borrower finds that there are going to be payment defaults, he will schedule liquidations.

Explanations from Cirrus:

Basically, there will soon be some unfortunates among the holders of the most popular NFTs of the moment. Still, there are other investors who are doing just fine like Franklin. The latter being the lucky owner of 60 apes currently. Basically, he has about $17.5 million in his wallet . Thus, the most daring investors manage despite the bull run even without being a whale.

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