Sale Of Blue-Chip NFTs Plummets Amidst The Crypto Market Crash

[TL; DR]

Blue-chip NFTs are well-known, stable, and high-value non-fungible token collections.

An NFT collection is considered among the Blue chip when it is reliable for long-term investment.

A blue-chip NFT has a proven record of growth and considerable value.

The word blue chip refers to the color with the highest value in poker games.

In physical finance, a blue-chip means an asset such as stock or bonds that are good for long-term investment.

The price value of blue-chip NFTs continues to increase amidst popularity and appeal.

Bored Ape Yacht Club (BAYC), Crypto punks, Mutant apes, and Cool cats are some of the blue-chip NFTs.

Since the crash in the crypto market, all significant NFT collections have witnessed a decline in sales.

It is believed that blue-chip NFTs have lost about 6% of their values since the crypto market crashed.

Keywords: Blue-chip, crypto market, digital art, virtual, nft, collections, high-value, sales.

[Full Article]

The non-fungible token (nft) ecosystem has continued to attract investors and virtual art enthusiasts. The fact that creators and holders can monetize their crafts, make them available on NFT marketplaces and get the proceeds of their works directly into their wallets makes it the toast of all.

Today, there are several Nft creators, marketplaces, and collections. Of all these NFT collections, some are considered the blue-chip NFTs. Why are they referred to as the blue-chip NFTs?

Not to worry, this article will highlight the blue-chip NFTs, why these collections are considered blue-chip NFTs, what distinguishes these collections from other digital artworks, and the reason behind the decline in the sale of these blue-chip NFTs.

Let's begin.

What Are Blue-Chip NFTs?

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Image: nftska.com

Blue-chip NFTs refer to well-known, stable, and reliable non-fungible token collections considered good for long-term investment. When an NFT collection is regarded as Blue-chip, it means that such collection is a better investment compared to other collections and has a proven record of growth and considerable value.

The origin of “blue-chip” dates back to the poker game. Three color poker sets have three chips; red, green, and blue. During the poker game, the blue-chip will always hold the highest value.

Similarly, the term “blue-chip” was referenced in physical finance. An asset such as stock or bonds is suitable for long-term investment. So when you invest in those blue-chip assets, you will enjoy a continuous flow of returns on your investment.

In the Non-fungible Token ecosystem, blue chip NFTs are digital art collections such as photography, drawings, music, etc., that you can safely invest in. The values and appeal of blue-chip NFTs supersede that of other collections.

Most times, the price value increases due to its popularity and appeal. Some blue-chip NFT collections include Crypto punk, Bored Ape Yacht Club (BAYC), Cool Cats, and VeeFriends.

Blue-chip NFTs do not have distinguishable features from other NFTs; how you mint and sell these high-value NFTs is the same as other NFTs.

However, blue-chip NFTs have been in the market for a long time, gathered enough buzz, and have distinguished themselves in the digital art market. So whenever these blue-chip NFTs put up their limited collections for sale, they are always at a higher price because the price value keeps increasing.

A new or old NFT collection can attain the “blue-chip” status, and the duration in the marketplace is inconsequential. For instance, The Bored Ape Yacht Club (BAYC) was only launched in 2021, and Crypto Punks have been around since 2017.

Both NFT collections are blue-chip NFTs. Most times, what makes an NFT collection of high value includes a reputable brand name, the status of the creators, teams, and holders, current price value, and the NFT community acceptance.

Moving forward, something unusual happened in the NFT ecosystem when the sales and prices of these NFTs declined amidst the crypto market crash. It is, therefore, reasonable to highlight the plummet in sales of these Blue-chip NFTs.

Blue-chip NFTs Sales Volume Decline

Image: TheCryptoInsight

Recently, the Non-fungible token (NFTs) have witnessed a decline in their sales volume. Most especially the blue-chip NFT collections. The fall is mainly due to the crash in the crypto market and reduced demand for digital art collections across various marketplaces.

According to Nifty Price, blue-chip NFTs have recently lost about 6% of their value. Other NFT aggregators like CoinGecko and Nftpricefloor also reported the plummet in the floor price of these digital assets.

For instance, the Bored Ape Yacht Club (BAYC) witnessed a decline of about 17.97%, putting the floor price to 72ETH. Similarly, the floor price of Crypto punk, another blue-chip NFT, dropped by 0.81% to 48ETH.

Of all the top ten blue-chip NFTs, only Autoglyphs increased by 21.94% and are now worth 189 ETH. Mutant Ape, CloneX, RTFKT, Doodles, MEEbits, and Azuki have declined in sales, even though they are among the top ten blue-chip NFTs.

The bullish phase of the cryptocurrency market directly affects the sales of blue-chip Non-fungible tokens (NFTs).

For instance, according to Cryptoslam, in the past weeks, the sales of Bored Ape Yacht Club (BAYC) have fallen by about 39% and dropped to 72.5 million dollars. The floor price has fallen to 72ETH, showing a decline of about 18%.

Similarly, Otherdeed, a Yuga Lab NFT collection that nearly crashed the Ethereum network at its public launch, has dropped by 86% in sales. The floor price of the Otherdeed NFT collection is now about 2.9ETH.

In contrast, the Azuki collection has witnessed an uptick in sales during this period of the crypto market crash. The fall in floor price following a controversial blog post by its pseudonymous founder-led to increased demand for the Azuki collection, and the sales have increased by about 327.5%.

Conclusion

Image: eGamers.io

Blue-chip NFTs have distinguished themselves over time and are considered long-term investments. While most investors look forward to holding these blue-chip NFTs, they come at high floor prices.

The recent crypto market crash affects every decentralized protocol, including Non-fungible tokens. Industry players are optimistic that the crypto market will recover soon, and the sales of NFTs will soar accordingly.

Author: Valentine. A, Gate.io Researcher

This article represents only the researcher's views and does not constitute any investment suggestions.

Gate.io reserves all rights to this article. Reposting of the article will be permitted, provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.