- Bored Ape Yacht Club NFTs have fallen over -90% in value.
- NFTs with solid utilities are failing to make it through the bear market.
- This will likely push NFTs to produce greater utility or die altogether.
Crypto traders and analysts prove yet again that NFTs without a strong underlying utility will inevitably fail. In the crypto world it is only those projects that bring improvements to humanity and not just hype are the ones that will get you through a bear market.
Seasoned traders and investors of the crypto industry discuss the huge fall in the price of Bored Ape Yacht Club NFTs. Recently, the prices of these NFTs have fallen from a value of millions to just a few tens of thousands.
This sparked a discussion on the CryptoCurrency thread on Reddit. In detail, the post draws light to how Bored Ape Yacht Club NFTs are down by over -90%. The user also says that this was inevitable as the project was mostly just hype and no utility.
The discussion goes on to recognize how bear markets have a profound impact not only on cryptos but also on all types of assets. During a bear market, more individuals tend to sell their holdings, causing panic and driving many to exit the markets.
As a result, the market becomes relatively empty, lacking significant buying power. Naturally, this leads to price declines, even for the likes of Bitcoin (BTC), the king of cryptocurrencies. However, there are varying degrees to these price downturns.
For instance, BTC and Ethereum (ETH) have experienced relatively smaller declines compared to other altcoins. The reason for this lies in the factors that initially fueled price increases. In the crypto market, as in any emerging market, assets are often driven by hype.
However, the long-term sustainability of an asset’s value depends on whether it has genuine utility and justification behind the initial hype. Projects that are solely built on hype without underlying utility are bound to fail, sooner or later.
Therefore, the thread agrees that the outcome for the BAYC NFT Collection is logical. Specifically during a bear market, investors tend to gravitate towards safer assets that demonstrate real utility rather than purely speculative ape pictures.
The user ends with a message saying they hope traders and investors learn this crucial lesson, even if it is through the hard way. The user reminds readers, even if an investment performs well during a bull market, it is essential to remember that hype alone will not suffice in a bear market. Ultimately, it is the bear market that can either make or break an investment.
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