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Crypto Winter Hits NFT Ecosystem the Hardest

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VOC, Voice of Crypto, NFT

Key Insights

  • Justin Bieber’s Bored Ape collection floor price dropped by 94%
  • He bought the NFT collection for 500ETH/ $1.3 million and is now worth 59.16ETH
  • Yuga Lab’s Cryptopunk is another blue chip collection whose floor price has plunged 

 

The NFT ecosystem received unprecedented attention and buzz a few months ago. At the peak of the NFT buzz, several prominent individuals across all industries owned one or more collections. Justin Bieber is one of the prominent individuals who bought a “blue chip” NFT. 

Justin Bieber, a Canadian singer, had the Bored Ape Yacht in his wallet— having bought it for $1.3 million in January 2022. However, ten months after, the crypto winter has not spared the NFT market. Prices of digital art collections have continued to drop, with blue-chip NFTs such as Bored Ape getting affected. 

Justin Bieber’s NFT Collection Down by 94%

In January 2022, Justin Bieber bought “Bored Ape #300”, a Bored Ape Yacht collection, for 500 ETH. Ten months later, the price is now at just 59.16 ETH, representing a 94% loss. 

Similarly, the Canadian singer bought his “Lonely Ape” collection for an estimated dollar price of $1.3 million. After the Ethereum halving, the price value of that collection dropped to $71,500. 

Recall that when Justin Bieber bought the NFT collection in January, he was widely criticized. The critics said the price he bought the collection was more than it was worth. Justin was overpaying 500ETH for his BAYC NFT, which has common features with other collections. 

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NFTs Follow Bearish Trend

Furthermore, it is unfortunate that the supposedly called “Blue-chip” NFTs that go for high prices are losing their value. Blue chip NFTs are considered symbols of prestige and a store of value over a long period. However, in less than a year of their peak performance, their price values have plunged. 

For instance, CryptoPunk, another  “blue chip” NFT project owned by Yuga Labs, had a 23% drop in its floor price. In November, the price dropped to about $79,800 (66.5 ETH). Similarly, the floor price of the Bored Ape dropped from 66.6 ETH to 58.2 ETH and fell as low as 48 ETH.

In April, the Bored Ape peaked at 152 ETH, shortly before the crypto market crash.

Justin Bieber is considered a Non-fungible Token enthusiast. Asides from his Bored Ape, he has Mutant Ape Yacht Club, Doodles, World of Women, and Lives of Lalisa collections.

Similarly, several other celebrities and prominent individuals own BAYC NFTs. They include TV host Jimmy Fallon, actress Gwyneth Paltrow, and media personality Paris Hilton. 

Furthermore, the NFT ecosystem has witnessed a fall in the floor price of most collections, including the blue chips. Experts say the current downtrend is related to the crypto winter. 

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