The core NFT collection of the Bored Ape Yacht Club (BAYC) ecosystem has witnessed a decline, with its price floor now resting at 37 ETH, a threshold previously observed back in November 2021. This drop signifies an 83% reduction from BAYC's historical peak when measured in dollar value, which reached $435,000.
The downward price movement adds a sense of immediacy to the ongoing election for the Special Council, a group of paid members within the decentralized organization (DAO) responsible for overseeing the ecosystem's development.
Additionally, ApeCoin, the token considered the cornerstone of the world's most valuable NFT ecosystem, reached its lowest point ever on June 19, plunging by 93% from its peak before showing signs of recovery last week.
Prominent Departures
The ecosystem has witnessed the departure of significant holders. FranklinIsBored's address, which previously possessed more than 50 Bored Apes and contributed to over $100 million in trading volume, now holds none, as reported in a Dune dashboard analyzed by hildobby.
Moreover, data from Nansen reveals that 44 holders who had owned their Bored Apes for over a year opted to sell them in the past week. A Steady Stream of Royalties
Yuga has also accumulated a substantial sum of over $100 million in royalties generated from the trading of its NFTs. Sara Gherghelas, an analyst at DappRadar, hailed Yuga's royalty model as a "flawless business model" during an interview with The Defiant.
Despite recent price fluctuations, the Bored Ape ecosystem continues to assert its dominance in the NFT arena. Gherghelas authored a report revealing that Yuga Labs' NFTs, comprising a total of 16 collections, contributed to 34.5% of the entire NFT trading volume during the last quarter of 2022 and the first quarter of 2023. Deleveraging in Progress
Another pressing concern has been the looming threat of liquidation cascades. The declining prices of Bored Apes, which serve as collateral in lending protocols, have compelled some users to face the risk of loan liquidation and the potential seizure of their NFT assets.
With two incoming leaders poised to assume leadership roles within the Ape Foundation, the ApeCoin DAO has a valuable opportunity to reset its trajectory. Its recent decline has been notable, but this decline must be contextualized within the backdrop of the unprecedented heights it once reached—a historic bull market where a single Bored Ape could command a value nearly equivalent to the average American home.
"Distributed Autonomous Organizations (DAOs) allow us to adapt democratic principles at the speed of technological advancement," remarked Siu, highlighting the ApeCoin DAO's pioneering role in this regard. "I take pride in having been a founding council member and am confident in the transition of the DAO into the hands of community-elected representatives who will undoubtedly act in the best interests of the DAO and its community."