It’s time for another Friday Focus with yours truly, sponsored by @Meta_Winners (https://t.co/rzxAOSJ1yV)
This week, a photograph of a dog with a hat sold for 1,210 ETH. The photo was supposedly minted in collaboration with the original photographer and shows, ‘Achi’, the now infamous face of the @solana $WIT meme coin, ‘Dog Wit Hat’. [1]
This remarkable sale headlines 7 days where memecoins on @solana monopolised our collective attention. New coins were launching on the hour, some raising millions in pre-sales, often leading to immediate problems and price crashes with ‘winners’ few and far between.
The NFT itself (sold to ‘Gigantic Rebirth Ventures’) was said to deliver 95% of the incoming revenue to the original owners and 5% to the platform it was minted on - @foundation. The mind-blowing final sale price brings back memories of similar sales that occurred in late 2021, often depicting popular YouTube videos and internet memes. [2] Whether the winning bid was an offer of thanks or a tip to Achi’s owners is yet to be confirmed, after $WIT recently hit a market cap of over $3billion USD.
This may sound like the most ridiculous news of the week, however, Achi’s photograph sale marked the beginning of what will be a week to remember for some (and one to forget for many). ‘Book of Meme’ $BOME launched to little fanfare on March 14th, via a presale on Solana held by @Darkfarms1. Many fans of his work joined the sale, receiving an initial % of $BOME according to their contribution timing and size. Within a day, the market cap of $BOME reached $1billion USD. [3]
The immediate rise of $BOME led to hundreds of copycats appearing over the week. Twitter users would provide a SOL address and some information about a new coin airdrop and hungry degenerates sent millions of dollars in the hope of reaching the dizzy heights of the original release. As this happened repeatedly, along came the inevitable rug pulls, empty promises and reputations put on the line.
The insane presale pandemonium has died down in less than a week, representing perfectly the chase for a quick profit via a gamble from speculators. The famously short attention spans of many in the crypto space was only exacerbated by this short, but dangerous, phenomenon. @ZachXBT sums it up by sharing that over 796,000 SOL ($149.2M) was sent to random SOL wallets during this week. [4]
Will this week mark the end of the presale trend that keeps rearing its ugly head - or is there more to come?
[1] https://t.co/RORNzBAYKJ
[2] https://t.co/ByV8ZXWaR3
[3] https://t.co/K8Nn6LHv3E
[4] https://t.co/gHrsaLwPD7
We all feel it; the playing field is changing again. Some are saying, ‘We’re BACK’. We never left, but I understand the sentiment and excitement. So, with the upward turn potentially upon us, who do we think will join us on the #web3 side?
A number of household names are already involved in #web3 and #NFTs: @nike, @dolceandgabbana, @lamborghini and @TiffanyAndCo - to name a few. So, in this constantly changing and dynamic ecosystem, whoever joins has to come at it with a fresh new approach and not simply mimic what is already out there.
We can try to follow the curve and predict what could be around the corner, but we all know it can change at the drop of a hat. Who will lead the charge and be the brand that shines a light on this ever-changing #NFT world?
Are there any brands in particular you want to see join the space or are you excited to see the evolution of one already here?
Calling all survivors of @DeFiKingdoms, a new game on @Blast_L2 with very similar vibes has launched.
Check out @CryptoValleys, it's a Gacha-led farming game:
https://t.co/EPzn5NiNg6
I've just started diving in now and was sent some starter seeds from the team; there are some community-led guides live at https://t.co/EsySjYu0T6, which should help you on your farming adventure. 👨🌾👩🌾
It’s time for another Friday Focus with yours truly, sponsored by @Meta_Winners (https://t.co/rzxAOSJ1yV)
This week, let’s talk about the significant ETH price drops we've seen recently across the majority of historic NFT collections.
Over the last 30 days, these collections have been at the receiving end of a hammering of their floor price (ranging from 30-60% in ETH terms). With @BoredApeYC down 35.4%, @doodles down 52.9% and @azuki down 41.1%, according to @MagicEden.
It’s worth noting that ETH itself is up just over 50% against the US dollar over the same 30 days. However, what people outside the market often don’t realise is that Ethereum NFTs don’t have a history of being tied to dollar values, unlike those on @flow_blockchain or @WAX_io. Essentially this means that they don’t directly and immediately relate to the price of ETH. So, what is driving this price action?
Despite headlines suggesting NFTs are dragging behind, indirectly insinuating a strong connection between high Ethereum price and a sudden increase in NFTs, the reality is different. [1] History suggests that when we see substantial gains for major Cryptocurrencies, NFTs tend to suffer in the immediate aftermath. Interest moves away from NFTs as short-term collectors and speculators often chase money, volume and quick gains. @dlnews suggests that rising fees and Gas prices are to blame - and this can form a small part of the picture. However, if they assessed the patterns in NFT trading across the years or analysed events, like the @OthersideMeta mint, they might realise that if somebody wants a high-end asset, they don’t mind paying the fees to claim it.
One of the major contributing new factors in this particular cycle is the growth of lending and loans against NFTs. The downward trends of the last 30 days have been strengthened by the mass liquidations of loans against certain collections. Users can now essentially ‘short’ or ‘long’ NFT collections and receive liquidity against their NFTs to purchase and borrow even more NFTs from the same collection. If the price drops, these loans can default and cause a spiral of liquidations - therefore dropping prices further and faster than previous cycles.
The notorious high point of the last NFT market occurred in early May 2022, where BAYC hit a floor of 145 ETH. However, Ethereum had hit its all-time-high price of the cycle ($4,891.70) a whole 6 months before this, in November 2021. In this 6 month gap, countless traders and speculators moved away from the major cryptocurrencies and looked to invest their newly found profits into other assets, such as NFTs. NFTs also provided these investors with the ability to flaunt their digital wealth on social media and the blockchain.
In Psychology, it is often said, “The best predictor of future behaviour is past behaviour”. Now, admittedly, our evidence is limited by only a short market history for NFTs. This aside, it could easily be argued that now is a good time to buy some of the established collections in ETH terms. It may not be the perfect entry point, but it could be seen as a strong one.
[1] https://t.co/qkTiIJWkzo
You can now claim your $PAC from Airdrop 1 on @Blast_L2 at https://t.co/AoEuPUOhWg.
Airdrop 2 requires you to tweet about @pacmoon_ and $PAC to earn coins, hence... this tweet.
Have fun 😉
At the end of February, @Forge (the gaming rewards platform) joined forces with six blockchains to further enhance their 300k+ registered users experience.
Everyone loves a reward, especially when it's received from doing something you love and enjoy. So it's no surprise to see so many gamers using platforms like Forge to get more 'bang for their buck'.
With user numbers in the higher levels and airdrops being the current trend in #web3 and #NFT world, is there a gap in the market for adding more gamification to the grind for airdrop tokens?
Sound off below.
#PointsMeanPrizes
Going shopping for S1 @NBATopShot Moments?🛍️
👀You might want to check out @pranksy’s Flowty Profile! Lots of S1 Moments are being listed at a discount! #GrailsOnFlowty🏆
🔗: https://t.co/Azs0AI92ZI