Amid the Yuga Labs restructuring, how are investors and collectors reacting to the changing situation in the NFT market?

Yuga Labs, the company behind the hugely popular Bored Ape Yacht Club (BAYC) NFT collection, is passing by a restructuring effort.

This move comes amid a challenging period for the company, marked by a sharp decline in the value of its flagship NFTs and the need to realign its strategic focus.

CEO Greg Solano recently shared a heartfelt message on X, acknowledging the company’s struggles and outlining a path forward.

GM, very difficult day today. I am determined to transform the yuga and take us back to our roots, and that means making difficult decisions. By far the hardest thing is saying goodbye to some talented team members. here was my message to the team this morning. pic.twitter.com/gBkoNf2iK3

– Garga.eth (Greg Solano) 🍌 (@CryptoGarga) April 26, 2024

Solano cited the importance of regaining focus and agility, positioning Yuga Labs as a leaner, more efficient, and deeply crypto-savvy organization.

One of the main initiatives of Yuga Labs’ restructuring plan is the divestment of certain gaming projects. HV-MTL and Legends of the Mara, two notable ventures, were acquired by gaming studio Faraway.

Additionally, Yuga Labs is placing renewed emphasis on its Other Side metaverse project. Launched during the peak of the 2022 NFT boom, Otherside aims to create a digital universe where users can interact, create and trade NFTs.

Despite market challenges, Yuga Labs mentioned plans to move forward with this ambitious initiative.

The crypto community’s response to the Yuga Labs restructuring has been mixed. While some have expressed support for the company’s efforts to adapt and evolve, others have raised questions about the future direction of its NFT offerings.

Current performance of BAYC NFTs

Following the announcement of Yuga Labs’ restructuring efforts, there has been a notable increase in the performance of its flagship BAYC NFT collection.

As of April 30, BAYC NFTs have visa an 80% increase in trading volume over the previous 24 hours, with approximately 1,300 worth of ETH traded in the last 24 hours, equivalent to approximately $4.2 million.

The esteemed market value of BAYC NFTs is approximately 147,139 ETH, which is equivalent to approximately $466 million. This represents about 11% of the total NFT market capitalization of $4.23 billion.

In addition to trading volume and market capitalization, the number of sales of BAYC NFTs also increased by more than 52% to 96.

NFT Market Performance

The NFT market has been experiencing a surge in activity and growth, with several blockchains and projects recording notable increases in sales and prices.

Ethereum: Ethereum (ETH) has the highest sales volume in previous 24 hours from April 30th, with only about $9 million. However, Ethereum saw its a month volume has fallen more than 57% since March to about $250 million.

Source: CryptoSlam

Bitcoin: Bitcoin (BTC) recorded nearly $7.5 million in NFT sales in 24 hours, the second-highest value in the sector. Bitcoin generated $542 million in total NFT sales in March, its best month since last December, and a 70% increase from the previous month.

Solana: Solana (SUN) came in third place on April 30, with $4.7 million in sales in the previous 24 hours, a 52% increase in daily sales. Solana had its most successful month for NFTs this year in March, with over $250 million in sales, an increase of about 16% from February. The average sale price of Solana-based NFTs in March surpassed $100 for the first time since April 2023.

Source: CryptoSlam

Overall, NFT prices are rising across all blockchains, with the average sale price reaching the highest level in nearly two years on some chains.

If this trend continues, we could see renewed interest and investment in the NFT space.

What to expect next?

TechNavio Review projects an expansion of the NFT market, with a compound annual growth rate (CAGR) of 30.28% between 2024 and 2028, reaching a market size of at least US$68 billion.

By 2024, TechNavio predicts year-over-year growth in NFT market capitalization of at least 23.27%.

Geographically, North America and Europe have been leading in NFT adoption. However, data from Metav.rs shows that Singaporeans, Chinese and Venezuelans were the most active NFT traders in 2023.

Interestingly, women in Thailand have shown a greater interest in NFTs, with 30% collecting them, compared to 23% of men.

In contrast, 70% of Americans remain unaware of what NFTs are, highlighting the untapped potential of the US market.

In France, 3.5% of the population purchased NFTs and almost half of young French people aged 18 to 24 are open to purchasing NFTs.

However, as governments around the world take a closer look at the crypto space, more rules and regulations are expected, which could also impact NFT markets. Additionally, the general volatility in this space can make or break the game.

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