Here’s Why CryptoPunks Successfully Flipped BAYC This Week!
Here is why CryptoPunks successfully flipped BAYC this week! On August 21st, members of the NFT community were buzzing about the fact that CryptoPunks flipped BAYC to take the number one spot as the NFT collection with the highest floor price.
BREAKING: Cryptopunks floor price briefly flipped Bored Apes #NFT
— CoinGecko (@coingecko) August 21, 2022
CryptoPunks Briefly Topped
On August 21st, CryptoPunks successfully climbed to the top briefly after beating BAYC’s floor price. Based on data from NFT Floor Price, on Sunday Morning, CryptoPunks’ floor sat at 66.45 ETH, while BAYC sat in the second spot with a floor price of 65.99 ETH.
However, at the time of writing, BAYC has returned its position as number one with a floor price of 68.48 ETH.
This is reportedly the first time that Cryptopunks was able to successfully flip BAYC since back in March earlier this year. Although the two NFT projects have been fighting for the number one spot for some time now, there could have been a number of reasons as to why CryptoPunks was able to briefly take over that number one spot.
BAYC and BendDAO
Recently, BAYC floor price saw a massive drop after the collection saw a big liquidation issue relating to BendDAO. On August 17th, it was brought to the attention of many in the community that there were more than 45 Bored Ape NFTs that were in danger of being liquidated after being used as collateral by the ETH lending platform BendDAO.
However, since then, it’s been revealed that BendDAO holds a lot more BAYC than initially thought. With the crypto market’s recent crash, many more of these BAYC NFTs may be prone to being in the ‘danger zone’ in threats of being liquidated.
5/ BendDAO currently holds 272 BAYCs (2.72% supply) and 309 MAYCs (1.59% supply)
Other platforms also have a fairly large amount of near liquidation loans
Liquidation will cause a death spiral for the BAYC ecosystem and NFT market as a whole. pic.twitter.com/m4s1ciZQ99
— doubleQ (@doublekills_) August 19, 2022
With the threat of mass liquidation to BAYC NFTs, many in the community seemed to have temporarily left their BAYC NFTs in order to avoid problems and a possible massive loss. Because of this, BAYC floor price has been decreasing with time and CryptoPunks was able to overtake the BAYC collection.
CryptoPunks and IP Rights
Aside from that, another reason why CryptoPunks was able to gain the top spot could have also been related to their recent IP rights change. Last week, Yuga Labs announced that CryptoPunks NFTs will officially be receiving the same IP rights as BAYC NFTs
Punks, the IP rights agreement for the CryptoPunks collection is now live and can be found at https://t.co/MMIlA0sp5W. This moment is something we’ve promised from day one and we’re looking forward to seeing what the community builds, using the terms as guidance. More details 🧵
— CryptoPunks (@cryptopunksnfts) August 15, 2022
CryptoPunks tweeted, “We believe offering IP licenses to holders will open the door to endless creativity and possibilities for Punks, and count ourselves lucky to be along for the ride to come.”
With the freedom of these new IP rights, many have seemed to become more bullish of the CryptoPunks collection, leading it to rise in floor price little-by-little over time.
Related: What You Need To Know On CryptoPunks’ New IP Licensing Rights!
For more info regarding Crypto Alpha and NFTs Alpha. Always follow us on Twitter and Instagram
