Bitcoin NFTs, Bored Ape Yacht Club holders booked nearly $2M in losses

Bitcoin NFTs, Bored Ape Yacht Club holders booked nearly $2M in losses

Traders are booking nearly $2M in losses per day.

The NFT market is still grappling with problems, with holders selling their digital assets at a substantial loss and marketplaces seeing both volume and users plummeting.

Losses on secondary sales are averaging 1,000 ETH per day, with spikes as high as 3,000 ETH, according to NFTstatistics, a popular Twitter account that monitors the non-fungibles sector.

pet3rpan, a partner of 1kx, said.

In the last 30 days, Blue-chip NFTs like CryptoPunks, Bored Ape Yacht Club, and Moonbirds have experienced dropages of 18%, 16%, and 13%, respectively. The market was impacted by a single holder selling 27 Bored Ape Yacht Club NFTs worth $3 million at the time, which caused a cascading effect on the market.

NFTs posted as collateral on lending protocols are being liquidated, with the majority of liquidations happening on NFTfi. The market debacle has resulted in a drop in daily volume and active users in all NFT marketplaces over the past three months.

The popularity of Bitcoin NFTs continues to grow among NFT enthusiasts. The total number of inscriptions has reached 1.85 million, a 85% increase in just two weeks, with the total fees generated by the protocol reaching $5.3 million.

NFT lending protocol NFTfi has introduced OG points, a loyalty-based rewards program to encourage users to use the platform. Borrowers and lenders of eligible collections can obtain OG points, which will eventually become redeemable for blockchain tokens.