The past week has witnessed a notable decline in the minimum price thresholds for prominent Ethereum-based NFT collections, coinciding with a surge in Ordinals values on the Bitcoin blockchain.
As reported by CoinGecko and Magic Eden, key collections such as Bored Ape Yacht Club, Mutant Ape Yacht Club, and Pudgy Penguins have experienced reductions in their price floors by 37%, 42%, and 38% respectively. Meanwhile, the NodeMonkes Ordinals collection on the Bitcoin (BTC) blockchain has observed a remarkable 65% surge in its valuation during the same period.
The term “price floor” denotes the lowest price point at which an NFT from a particular collection is available for purchase. This fluctuation in value has been accompanied by a noticeable downturn in both monthly trading volumes and the frequency of trades involving NFTs on the Ethereum (ETH) blockchain.
According to data from The Block’s Data Dashboard, February witnessed a substantial decrease in trading volume to $786 million, reflecting a decline of over 10% compared to January’s $868 million. Presently, the trading volume stands at $397 million as of mid-March.
Furthermore, there has been a decline in the total number of trades conducted on Ethereum-based NFT marketplaces since January, dropping from over 627,000 to 536,000 in February, with March’s figure currently hovering around 160,000. This downward trend extends to the monthly revenue generated by NFT marketplaces, which decreased from $3.4 million in December to $1.6 million in February, marking a significant 51% decrease. This trend has impacted platforms such as OpenSea, X2Y2, and LooksRare.