Amid Yuga Labs’ restructuring, how are investors and collectors reacting to the changing situation of the NFT market?
Yuga Labs, the company behind the immensely popular Bored Ape Yacht Club (BAYC) NFT collection, is undergoing 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 candid message on X, acknowledging the company’s struggles and outlining a path forward.
gm, really tough day today. I am hellbent on transforming yuga and getting us back to our roots, and that means making hard decisions. by far the hardest 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 mentioned the importance of regaining focus and agility, positioning Yuga Labs as a leaner, more efficient, and deeply crypto-savvy organization.
One of the key initiatives in Yuga Labs’ restructuring plan is the divestment of certain gaming projects. HV-MTL and Legends of the Mara, two notable ventures, have been acquired by gaming studio Faraway.
Additionally, Yuga Labs is placing renewed emphasis on its Otherside 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 challenges in the market, Yuga Labs has mentioned the plans to advance this ambitious initiative.
The crypto community’s response to 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 uptick in the performance of its flagship BAYC NFT collection.
As of April 30, the BAYC NFTs have seen a 80% increase in trading volume in the previous 24-hours, with approximately 1,300 in ETH traded in the last 24 hours, equivalent to about $4.2 million.
The estimated market cap of BAYC NFTs stands at approximately 147,139 ETH, which is about $466 million. This represents about 11% of the total NFT market capitalization of $4.23 billion.
In addition to the trading volume and market capitalization, the number of sales of BAYC NFTs has also seen over 52% increase, reaching 96.
Performance of the NFT market
The NFT market has been experiencing an uptick in activity and growth, with various blockchains and projects seeing notable increases in sales and prices.
Ethereum: Ethereum (ETH) has the highest sales volume in the previous 24 hours as of April 30, with just about $9 million. However, Ethereum saw its monthly volume drop by over 57% since March to about $250 million.
Source: CryptoSlam
Bitcoin: Bitcoin (BTC) recorded nearly $7.5 million in NFT sales in the 24 hours, the second most in the industry. 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 (SOL) took the third spot as of 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, about a 16% increase from February. The average sale price of Solana-based NFTs in March surpassed $100 for the first time since April 2023.
Source: CryptoSlam
Overall, the NFT prices are rising across all blockchains, with the average sales price reaching the highest level in almost 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’s analysis 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 $68 billion.
In 2024, TechNavio predicts a year-over-year growth in the NFT market cap 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 higher 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 in the US market.
In France, 3.5% of the population has purchased NFTs, and almost half of the French youth aged 18-24 are open to buying NFTs.
However, as governments worldwide take a closer look at the crypto space, more rules and regulations are expected, which could impact NFT markets as well. Moreover, the general volatility in this space could make or break the game.
Read more: Most expensive NFTs: Highest selling digital gems