Liquidation Fears Mount as BAYC NFTs Floor Price Drops

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The value of the Bored Ape Yacht Club’s (BAYC) NFT collection has hit its lowest point since the beginning of the year, as the market for NFTs continues to drop and the overall crypto market crashes.

BAYC NFTs
BAYC / MAYC Liquidation auctions started on BendDAO

BAYC NFTs have seen a price drop in recent months, with the value reaching lows not seen since early last year. The data from CoinGecko shows a steady decline since hitting an all-time high in May.

BAYC NFTs are the biggest by market capitalization, at 656,800 ETH—CryptoPunks is in second place with a total market cap of 655,000 ETH and a floor price of 65.5 ETH.

For Ethereum investors, the BAYC’s fluctuating price is a double-edged sword. When measured in dollars, the coin is currently worth around $107,000. That’s a substantial drop from its January value of just under $256,000. However, it’s also an uptick from the low of $87,000 it hit in June.

The situation for Bored Apes is dire, as the company has taken out loans on the peer-to-peer lending service BenDAO which could now be liquidated due to the collection’s plummeting floor price. This could mean big trouble for the company, and it will be interesting to see how they manage to get out of this crisis.

BAYC NFTs on the Verge of Liquidation

There are currently 72 BAYC NFTs in the “danger zone” on the platform, according to NFT trader Cirrus. These NFTs have a health factor of below 1.2, which means they’re at risk of a drop in the price floor triggering a liquidation.

NFTs that operate on the Ethereum network and are sold for Ether (ETH) prices have been following Ethereum’s movements in the market. After the events that took place in May and June, which involved the collapse of Terra’s algorithmic stablecoin UST and the bankruptcy filings of hedge fund Three Arrows Capital and crypto-lender Celsius Network, Ethereum lost approximately 43% of its value.