NFT prices have been falling recently.
The price of Bored Ape fell to 47.74 ETH. On May 1 last year, when Otherdeed for Otherside was about to be launched, the price of Bored Ape rose to 130 ETH. That was Yuga’s highlight moment.
When Bored Ape was launched on May 1, 2021, the minting price was only 0.08 ETH.
In the two years since the launch of the Bored Ape coin, its price has increased from 0.08 to 130 ETH, a 1,625-fold increase. The current price has fallen 63% from its peak, and the original minter has also received a 596-fold increase.
No one can say for sure whether the NFT track will continue to gain popularity in the next bull market, or continue to develop at the current pace and become one of the many ways to play in the crypto market.
NFT lacks liquidity, which is a common pain point.
Unlike other cryptocurrencies, which can be bought and sold at any time, if there is no market, it cannot be sold even at a lower price.
Judging from the transaction history of OS, the number of transactions of Bored Ape in the last 24 hours was 14. Even though the floor price fell below 50ETH, the transaction enthusiasm was not high.
On the one hand, the overall market liquidity has declined, and at the same time, people have become more cautious in choosing NFT investment targets.
However, they are unwilling to sell the NFTs they hold at low prices and hope that the market will recover and give them new opportunities. Based on the needs of these holders, various NFT+DEFI platforms have solved these pain points.
For example, BendDAO is an NFT-FI platform where players pledge the NFTs they hold and lend out a certain percentage of ETH.
If the market fluctuates too much and the NFT price drops to the borrowed ETH price, you will need to repay the loan as soon as possible, otherwise the NFT may be liquidated.
The amount of ETH that can be loaned out varies according to the NFT series and attributes, and the loan ratio also varies.
Currently, BendDAO’s loanable NFTs include the Bored Ape series, Cypherpunks, Azuki, Doodles, Moonbirds and other series.
In addition to BendDAO, Binance NFT also launched the NFT-FI function.
Binance NFT has been online for a long time, and some early project IGOs were also launched on the platform, such as StarSharks and STEPN when blockchain games were popular.
The NFT market has cooled down during this period, and various NFT IPOs are no longer popular.
The current defi function of the Binance NFT market alleviates some of the pain points of holders.
For example, by staking BYAC/MAYC, you can get APE, with an APR of 45-52%. The number of APEs you can get per day ranges from 2.9 to 12.4.
Based on the current APE of US$3.5, the daily profit is also more than US$10-40.
There is also the staking sandbox NFT the sandbox to obtain SAND, which is really a timely relief for some players who hold metaverse land.
JJ Lin was on the hot search a while ago because he suffered a 91% floating loss on the Metaverse land he bought in 2021. He posted on Weibo saying "I heard that netizens wanted to help him manage his finances." It's not a big deal for celebrities to lose a few million on a project, but netizens are really worrying about it for nothing.
However, ordinary players who play Metaverse Land NFTs do get trapped.
A friend of mine spent nearly 5,000 SANDs to buy a piece of land in Sanbox in 2021. At that time, the price of SAND was $2;
It is really hot to hold in my hand now. I will be unwilling to lose money if I sell it, but I can't do anything if I don't sell it and watch the price continue to fall.
It just so happened that Binance NFT Market launched The Sandbox NFT staking plan, which solved some of his pain points.
Through The Sandbox staking program, users can stake LAND NFTs held on the Polygon network to earn daily rewards in SAND.
The current price of SAND is US$0.5, which is equivalent to NFT mining.
If the metaverse story can be told well in the next bull market, Sandbox will undoubtedly be one of the most attractive projects; by then both sandbox land and SAND will have new opportunities.
Sandbox staking allows players who entered the Metaverse when it was hot to pledge land to obtain sand income, which can be regarded as one of the ways to survive the bear market.
The current NFT market is relatively quiet, and I don’t know which project will be the next narrative sector. It is better to be cautious when investing in a bear market. If you can make a profit for free or by holding it, you can explore it more.
As NFT continues to develop, there are more and more projects and the cycle is getting longer and longer, NFT-FI may become a new demand; since the NFT in hand cannot be sold for the time being, it is better to take a look at various NFT+DEFI gameplays.
The above is just my personal opinion, not investment advice. I am Chu Xiaolian, and I am paying attention to the Metaverse and web3.
