Bored Ape NFT sells for $1.2M; Wash trade or a new beacon of hope?

Bored Ape NFT sells for $1.2M; Wash trade or a new beacon of hope?

The Bored Ape Yacht Club (BAYC) collection witnessed a significant transaction as Bored Ape #1734 sold for over $1.2 million on July 13. The sale has injected optimism into the broader non-fungible token (NFT) market, previously facing a downturn. However, the transaction’s legitimacy has raised concerns, with some labeling it a potential wash trade.

Yuga Labs struggling

Weeks prior, popular NFT projects saw their values drop, with the BAYC collection experiencing a dramatic dip.

The minimum price of a BAYC NFT even fell to a 20-month low of 30 ETH, equivalent to $58,000. This slump, caused partially by an NFT influencer selling over 50 NFTs, also negatively affected Apecoin (APE), a token linked to the BAYC collection.

Defying these trends, the sale of Bored Ape #1734 has catalyzed an 8% floor price rise in the BAYC collection over the past week. The sale of Bored Ape #1734 is the highest recorded in the past month across all NFT collections, underlining the significance of the transaction.

Could this signal the recovery of the NFT market?

The collection’s minimum price, as monitored on OpenSea, is now around 33 ETH, showing a noticeable rise from just a week ago. Data from DappRadar reveals that the BAYC collection continues to hold sway in the daily NFT rankings, holding over 1,28 billion in market capitalization and a 4% pump in the floor price.

However, the considerable sale of Bored Ape #1734 appears to be an exception in an otherwise declining environment. This major transaction has generated significant anticipation within the NFT community. Observers are keen to see if this could mark a turnaround for the BAYC collection and the wider NFT market.

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