NFTs
Are NFTs back? CryptoPunk’s $16M Sale Signals Bullish Momentum
In 2020 and 2021, non-fungible tokens (NFTs) were all the rage. Projects like Bored Ape Yacht Club (BAYC) and Azuki have taken the crypto world by storm. Billions of dollars were spent, celebrities bought NFTs left and right, and fortunes were made. However, over the past few years, the enthusiasm around NFTs has largely waned, and the price of most NFTs is a far cry from the highs of the last bull market.
Despite the gloomy NFT environment in recent years, a major sale recently occurred on the CryptoPunk NFT project, potentially marking the start of an NFT renaissance.
In early March 2024, CryptoPunk 3100 sold for 4,500 ETH, which is equivalent to over $16 million. The NFT is one of nine Alien Punks, making it one of the rarest NFTs in the collection. The sale is the second biggest ever on the CrypoPunk platform, behind only CryptoPunk 5822another Alien Punk that sold for 8,000 ETH, or more than $23.7 million.
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The sale is the sixth largest ever across all NFT projects.
The CryptoPunk 3100 was last sold in March 2021 for 4,200 ETH, which was worth over $7.5 million at the time. This means that the previous holder profited over $8 million from the sale, holding the position for less than three years and nearly doubling their investment. However, most of the gains came from ETH price appreciation; the sale only yielded an extra 300 ETH tokens.
The anonymous buyer portfolio it was created just four days ago and was used exclusively to purchase the NFT. However, the wallet was overfunded by 300 ETH, worth over $1 million. It will be interesting to see how the wallet holder handles these tokens, whether holding them, selling them, or using them to buy more NFTs.
The sale could mark a change of pace in NFT markets, which have been in a major lull lately. According to Statista, sales volumes in 2023 were well below the numbers for 2022 and 2021. Additionally, the price of NFTs has dropped significantly.
Although markets have been in a tough spot, this recent sell-off could give investors the confidence they need to start buying again. Seeing one of the biggest sales in NFT history, investors may be inspired to take a fresh look at the NFT market. Furthermore, it could inspire NFT creators to start launching new projects.
Either way, the sale could certainly create a path for NFTs to regain relevance during a time when crypto is seemingly enjoying a resurgence across the board.
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This article Are NFTs back? CryptoPunk’s $16M Sale Signals Bullish Momentum originally appeared in Benzinga. with
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