For the Love of the Game (Market Commentary) |
Are NFTs finally ready to Blast off?
In a way, absolutely.
Let’s dive into what’s happening in NFTs this week and see why regardless of the market itself, Blast(ing off) is definitely in our future.
After months of traders farming NFTs on the Blur marketplace, and more recently, participating in the new layer 2 blockchain Blast, the long-awaited $Blast TGE finally arrives tomorrow. Traders have been at the edge of their seats waiting for details about token allocations to make accurate predictions on the value
of their claims. Finally, those allocation details are here. Pacman, the founder of Blur and Blast, revealed that 17% of the $Blast supply will be distributed in the phase 1 airdrop tomorrow. 7% goes to Blast Points, 7% to Blast Gold, and 3% goes to the Blur Foundation. Blur farmers got wrecked here, with .5% going to Blur traders and .5% going to Blur stakers, but Blur stakers get a bonus of 1% that they can claim tomorrow. The remaining 1% is held for Blur season 4 and future use, but there may be few traders left to participate in the new season. TLDR, Blur farmers are getting very
little for their efforts, which almost unanimously caused them to lose money on their NFT trades. It’s safe to say, farmers are not happy. Pacman will be revealing details about a new Blast Foundation tomorrow, which will help us wrap our heads around the future of the Blast ecosystem. Blur season 4 details will also be coming tomorrow, and, if there’s not serious rewards that are
set in stone, this may mark the end of Blur’s marketplace dominance. Personally, I’m expecting a major shift from the current farming meta to a meta that drives Blast NFT farming.
Still, many traders will find themselves getting a serious payday tomorrow, some to the tune of $10M+. With ordinals and top-tier NFT collections being cheaper than they were during the bear market, we can hope (not assume) that some of those funds find their way back into
NFTs. Fungible tokens and low-priced crypto are still pretty darn attractive to traders, so it’s not a given that NFTs will see a major boost.
The short-term future of NFTs hinges on Blur and Blast, and what they’re offering for the next chapter in both ecosystems. If their future is entwined over on Blast alone, the Ethereum NFT market may see even darker days ahead. Yes, it's even darker than the past week in the NFT market.
Last week cross chain NFT sales fell to another 2024 low, failing to break through $100M in sales. In fact, last week was now the lowest week of sales since the week of October 23, 2023, while trade profits fell to a 10-week low. Both of these metrics were driven by CryptoPunks, who saw a 62% increase in sales. Many of those Punk sales were
at a substantial loss last week. We don’t have much further to fall to reach the $55M low point we hit last fall, and it’s hard to picture a real moon trip in our immediate future. Still, the ETH ETFs are coming as soon as next week, and the presidential debate this week will put crypto (and maybe NFTs) on the
biggest stage we’ve seen to date. Consider this all fuel for a rocket that will, one day, blast off once again. - CryptoPunks may not be fully back, but they’re starting to find major support the lower the collection’s prices fall. In the past 7d Punks was the #1 NFT collection behind a 62.77% increase in
sales, while dominating the individual NFT sales rankings too.
- DMarket falls to the #2 spot this week, but still, those Counter Strike, DOTA2, and Rust gaming skins keep them near the top on a weekly basis.
- Pudgy Penguins had a major announcement this weekend, with the introduction of Igloo Inc, the new parent company above the Pudgy Penguins, Overpass IP, and the unrevealed “Redacted”. With
the big news, sales ripped 173.61% to $3.44M on the week.
- Milady enters the top ten this week as the collection’s floor price climbed to an ATH, of 5.5 $ETH. Sales were up just 2.56%, but with volume so low across the board, it’s all they needed to show
they’re now above most other top PFP collections.
- Ethereum is the top blockchain by NFT sales, in large part thanks to the CryptoPunks big week. Sales came
in at $36.54M, up 4.76% from the prior week.
- Polygon is building momentum yet again, with buyers up 54.13%, and sales climbing 33.02% to $20.26M.
- Bitcoin drops to the #3 spot this week with volume in ordinals drying up. Sales fell 24.22% to $16.59M while collection floor prices fell to multi-month
lows.
- Solana NFTs are still struggling in an ecosystem that is dominated by memecoins and celebrities (50 Cent, Hawk Tuah Girl, etc). There’s almost no demand for NFTs right now, and Solana’s
$11.69M in sales are all the proof we need.
- Azuki announced the hiring of a new COO, Steve Chung. Steve comes from CJ ENM and Fox and will play a large role in the upcoming Anime Chain. It’s worth noting that Steve called the current landscape a “post-NFT world” which is maybe not the best way to enter the community. Still, Azuki sales climbed 35.28% on the week to
$1.02M
- CryptoPunks had an incredible week of sales this week with 51 of the top 55 NFT sales on the week coming from the CryptoPunks collection. While some sales
came in as low as 22 $ETH, we also saw a massive 250 $ETH sale of a 1 trait CryptoPunk #627 last night.
The Cryptoslam 500 NFT Index shows what we’ve felt in the NFT community for the past week - steady declines. The index fell -1.67% to 1,389.98, a fresh new low for the year. Crypto is in a tricky spot with major uncertainty in the market thanks to Germany liquidating hundreds of bitcoin, and now news that Mt Gox will be returning potentially $9B worth of stolen bitcoin to creditors.
The good news is that Ethereum ETFs are right around the corner and as we saw last October, when crypto takes off, NFTs
move almost right along with it.
Be smart and keep your finger on the pulse of this market, by keeping your eyes on CryptoSlam and the indexes. You can stay plugged in by fixing your vision on our new daily Web3 live show called Chain Reactor.
Have a MEGA GM! — Yehudah
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In the Web3 and crypto world, a Token Generation Event (TGE) is when new tokens are created and distributed, marking the official launch of a token on a blockchain network. Think of it as the grand opening where the project's token hits the market and starts its journey. TGEs are something most participants in Web3
look forward to for various reasons, so make sure to dive in and learn about the past, present, and future of TGEs.
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