NFTs
Azuki NFT leads with record sales amid market crisis
As the cryptocurrency market faces substantial declines, Bitcoin (BTC) recently plummeted to its lowest point since February. Meanwhile, Ethereum-based Azuki reached unprecedented heights in the non-fungible token (NFT) sector, recording sales of $1.13 million, crowning it as the top NFT collection of the day, based on data from CryptoSlam.
As the crypto market continues to decline, Azuki sales are growing
In an impressive 24-hour period, Bitcoin fell approximately 6.3%, dropping below the critical $60,000 support level. Experts predict that this drop could have a domino effect, with analysts warning that a breach of this level could trigger further selling and exacerbate the current recession. Ethereum (ETH) also took a hit, dropping around 5% and falling below $3,000.
Other major altcoins, including Solana (SOL) and Avalanche (AVAX), suffered similar losses of around 6%. Consequently, the global cryptocurrency market capitalization has declined by more than $20 billion, exacerbated by a $540 million outflow from US spot Bitcoin exchange-traded funds (ETFs) since April 20.
This decline has caused some investors to question the long-term viability of cryptocurrencies. Research from 10x indicates that the average entry price for US Bitcoin ETF holders is around $57,300, which could now act as a crucial support level if the downtrend continues. Markus Thielen, CEO of 10x Research, suggested that the presence of temporary investors or “TradeFi tourists” in the crypto space has decreased.
He noted that as Bitcoin falls below the ETF’s average purchase price, further price declines could lead to a -25% to -29% correction from its peak of $73,000, potentially pushing prices higher. to between $52,000 and $55,000 in the last three weeks. This correction could eliminate these short-term investors and pave the way for a more stable market, driven by long-term believers in the potential of blockchain technology.
In stark contrast to the volatile cryptocurrency market, the NFT sector is thriving
And this can be seen with Azuki emerging as the only collection to surpass $1 million in sales in a single day. This increase in sales highlights the growing popularity of NFTs and their potential to represent a distinct asset class with its own market dynamics, less tied to the fluctuations in the broader cryptocurrency market.
Analysts speculate that Azuki’s appeal stems from its unique blend of artistic style, cultural relevance, and potential usefulness within a planned metaverse experience. This combination creates a sense of value and exclusivity that is attracting collectors even as traditional cryptocurrencies experience a downturn.
Source: CryptoSlam
Other NFT collections such as Dmarket and Dokyo have also seen significant sales volumes
DMarket, which offers in-game items on the Mythos network, racked up nearly $887,880 in sales, while Dokyo, operating on the Avalanche network, raised around $716,860 in 948 transactions. But they still remain behind Azuki. Notably, other prominent NFT collections such as Bored Ape Yacht Club (BAYC) and CryptoPunks each recorded just over $500,000 in sales, demonstrating resilience in a challenging market environment.
These sales numbers reflect a growing divergence where select NFT collections continue to attract significant investment despite broader market challenges, indicating robust and lasting interest in high-value NFTs like Azuki even as traditional cryptocurrencies experience a significant volatility.