The non-fungible token (NFT) market has been experiencing significant declines, but some recent sales keep hopes alive. Two days ago, a Bored Ape Yacht Club (BAYC) NFT was sold for over $1.43 million.
According to data from CryptoSlam, the BAYC NFT #7940 was sold for 588 ETH, worth $1,433,582 at the time of the transaction. The NFT was first minted three years ago, though its original price has not been disclosed.
This sale offers some optimism to the NFT community, but it comes in the midst of a larger decline. The BAYC collection, which once had NFTs valued between $150,000 and over $200,000 at its peak in 2021 and 2022, has seen a significant drop in value. Today, similar NFTs are selling for $20,000 to $40,000 — a fraction of their previous prices.
The downturn isn’t limited to BAYC. Other NFT collections and projects have also been hit hard by the market’s struggles. Sales across all major NFT blockchains — including Ethereum, Bitcoin, and Solana — have taken significant hits. Over the past month, sales on these blockchains have fallen by 46%, 26%, and 39% respectively, compared to the previous 30 days.
This decline has been ongoing for more than a year, and legal uncertainties have only added to the market’s challenges. In August, OpenSea received a Wells notice from the U.S. Securities and Exchange Commission (SEC), which is scrutinizing NFTs traded on the marketplace as potential securities.
Nonetheless, the SEC has already taken action against several projects in the space.
In August 2023, the SEC fined Los Angeles-based media company Impact Theory $6.1 million for offering unregistered NFT securities known as “Founder’s Keys.” In September, the Stoner Cats NFT project was also fined $1 million for selling unregistered securities. More recently, Dapper Labs settled a lawsuit over its NBA Top Shot NFTs, agreeing to pay $4 million.
These legal pressures have led many companies, even large players, to distance themselves from the NFT space. Starbucks ended its NFT rewards program, Odyssey, in March 2024, and GameStop closed its NFT marketplace in January 2024 after two years of operation.
