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Gate.io Blog The Total Trading Volume of Bored Ape Yacht Club Exceeds 650000ETH

The Total Trading Volume of Bored Ape Yacht Club Exceeds 650000ETH

01 September 23:35



TL: DR



  • Bored Ape Yacht Club NFTs have reached yet another record height exceeding 650,000ETH in trading volume.

  • BAYC is a collection of 10,000 NFTs which began with a presale on April 23 and received its full launch on April 29, 2021, with a price of 0.08 ETH.

  • Despite the crypto winter of 2022, BAYC transactions have not stalled, with three spikes in trading volume and trade count from February to May 2022

  • The success of Bored Ape NFTs is mainly due to Yuga Labs' innovation beyond the original NFT collection into an e a future metaverse, and a token that ties together the entire company's portfolio of projects dubbed the "Yugaverse."

Introduction




Bored Ape Yacht Club, famed as the poster child of NFTs, continues to reach new heights, with the trading volume exceeding 650,000 ETH. The floor price at the time of this writing stands at 79ETH, equivalent to $121,193.11. The market capitalization is now over $1 billion. The most expensive BAYC item was #2087, purchased in September 2021 for 769 ETH ($2,307,638 at the time).

Despite the project's explosive hype in spring 2021, it has remained one of the most valuable NFTs in the digital collectible world, particularly during this year's crypto bear market. This success was primarily due to Yuga Labs' expansion of the project's scope far beyond the original NFT collection into an ecosystem with NFT add-ons, a future metaverse, and a token that ties together the entire company's portfolio of projects, dubbed the "Yugaverse."


What is the Bored Ape Yacht Club?



Bored Ape Yacht Club (BAYC) is a limited edition of 10,000 NFTs that began as a simple collection of profile pictures (PFP). Each NFT includes a Bored Ape, which comprises around 170 traits. The project, an example of generative art, was created and existed on the Ethereum blockchain. Apart from the luxurious Value attached Bored Ape, the NFT also offers perks like exclusive owners-only zones, events & limited merch for members of the club. In March this year, the creator of BAYC launched a governance token ApeCoin as a means of exchange and governance in the ecosystem.


Background on BAYC Trading Volume



Although NFTs have been around for five years, the non-fungible token boom did not begin until 2021. It almost perfectly coincided with the Bored Ape Yacht Club launch, a collection of 10,000 cartoon ape NFTs that has come to represent the entire industry. BAYC has become a bellwether for NFTs in the same way that bitcoin has been for the overall crypto market in the last year.
The project, which began with a presale on April 23, received its full launch on April 29, 2021, at a debut price of 0.08 ETH. BAYC NFTs collection sold out 12 hours after launch, but there was little interest in it after that.

However, the earlier success resulted in one of the most famous late-night segments between Jimmy Fallon and Paris Hilton, which helped raise BAYC's profile. Celebrities such as Stephen Curry, Gwyneth Paltrow, and Post Malone began buying these profile-pic NFTs as status symbols.

The popularity of BAYC NFTs has made them fashionable items to display on social media among the wealthy. Then Bored Ape trading volumes increased in July 2021, and prices began to rise rapidly. BAYC has been a blue-chip collection that consistently stays at the top of NFT rankings.


Despite the crypto winter of 2022, BAYC transactions have not stalled, according to available data. There were three upticks in trading volume and trade count from February to May 2022. In each of these spikes, there were at least 45 transactions totaling at least $35 million.

Furthermore, the lowest number of transactions to date is two, totaling slightly more than $529,000 on February 19, 2022.


Why are BAYC NFTs Valuable?



Bored Ape NFTs are owned by the most powerful and influential people in the NFT space. This fact is because they have a Bored Ape, which denotes status. Although this is a self-fulfilling feedback loop, it is undeniable that when a member of the BAYC community recommends a project, that project gains traction. Generally, the factors that drive the value of BAYC include:

Copyright Ownership

Holders of Bored Ape enjoy all rights to the NFT image. It means that as long as the Ape is in someone's crypto wallet, they can do whatever they want with it.

They can incorporate it into their company logo or skateboard designs. Adidas has created a line of clothing based on the Bored Ape, which the company owns.

Premium membership benefits

If you own a BAYC NFT, you become a "Bored Ape Yacht Club member" with benefits such as
a. an invite to a private Discord server only for BAYC members,
b. NFT collectibles airdropped into members' wallets that can be sold for a profit,
c. and the ability to turn apes into "mutants" using free airdropped serums. These mutants, like airdropped NFTs, can be sold.


Celebrity endorsement

BAYC NFTs have become a status symbol having a long list of celebrities as holders. While high-profile celebrities charge millions of dollars to endorse brands and products, these celebrities pay a premium for their Apes. They were the ultimate spokespersons for the NFTs becoming must-have items.

Timbaland (1.6 million followers), Eminem (22.6 million followers), and footballer Neyman Jr (55 million followers) are among the Bored Ape owners who use their NFT as a Twitter profile picture. In February, Justin Bieber made headlines when he purchased a $1.29 million Bored Ape Yacht Club NFT. Eminem and Snoop Dogg released a video clip in June where the rappers were depicted as their respective Bored Apes.



BAYC NFTs and the Metaverse



Another utility of the Bored Ape NFTs is that they can be used as an avatar in other compatible virtual worlds. Although BAYC is not the only project that allows you to do this, it's far from standard practice for all NFT PFP/avatars. Hence, it's a benefit of the collection. You need to find a virtual world that can accommodate different avatar characters to get your Bored Ape NFT to where you desire. Then you will need to obtain the 3D file and transpose it to the new platform.

More so, Yuga Lab, the company behind the Bored Ape Yaacht NFTs, created its portion of the digital landscape in the metaverse known as Otherside. The initial sale in May was so oversubscribed that Ethereum gas fees reached $474. Yuga Labs sold $600 million in Otherside land in a single day.

In July, Otherside landholders entered the virtual world and played around for a while to see if the ecosystem could handle that many gamers.
Otherside has 100,000 parcels of land, and the platform has its marketplace. ApeCoin, the native token of the Bored Ape NFTs project, will be required by traders to purchase items in the marketplace.


Conclusion



Bored Ape Yacht Club NFTs have seen sustained growth owing to the innovative ideas of the Yuga Lab team. Each of the NFTs is ranked by the rarity of the traits which are displayed on Opensea, the largest NFTs marketplace. While an Ape with common traits may sell for a lower price, Apes with the golden fur trait are rare and sell for much more. However, the fact that these NFTs have become status symbols prices them away from the mainstream and precludes wider adoption.



Author: M. Olatunji, Gate.io Researcher
Disclaimer:
* This article represents only the views of the observers and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
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