In the aftermath of the USD Coin [USDC] depegging fiasco, the Non-Fungible Token [NFT] environment, along with other crypto verticals, experienced a number of drawbacks. Consequently, attention has switched to the impending struggle between CryptoPunks and Bored Ape Yacht Club [BAYC].
The market capitalization of CryptoPunks has surpassed that of BAYC, according to a March 19 tweet, with a value of about 847,000 Ether [ETH] compared to BAYC’s value of over 778,000 ETH at the time of writing. Thus, CryptoPunks’ market share increased to 8.63%, while BAYC’s share fell below 8%.
In addition, the floor prices of the two projects followed divergent trends. At press time, the CryptoPunks floor price soared to a six-month high of approximately $74, according to data from NFT Price Floor.
On the other side, BAYC’s floor price plummeted to just over $61, marking a 15% decrease month-to-date (MTD). The floor price is the lowest price for any non-fungible token in a specific collection. A decrease in the floor price of a project may indicate that an NFT initiative is losing traction.
The current increase in trading volume and value of CryptoPunks can be attributed to the launch of Wrapped CryptoPunks on the Blur [BLUR] marketplace. According to NFTGo, Wrapped CryptoPunks accounted for nearly 25 percent of all NFT purchases between March 13 and the time of publication.
Cryptopunks existed prior to ERC-721, the primary standard for NFTs on the Ethereum blockchain. Wrapped Cryptopunks is a decentralized application (dApp) built on the Ethereum platform that permits holders to convert their original CryptoPunks into ERC-721 tokens on a 1:1 ratio.
The popular NFT marketplaces could subsequently trade and exchange these wrapped tokens. The Wrapped CryptoPunks are already featured on the OpenSea marketplace.
NFT Market Takes A Downturn
The depegging of the USDC stablecoin caused much FUD, significantly altering the NFT market. At the beginning of March, the total sales volume fell by 55%, and the market capitalization also fell.
The blue-chip NFT index, regarded as a market bellwether, significantly declined 2.5% over the previous week. Yet, a tiny improvement might be attributable to the recent stimulus from CryptoPunks.