Bored Ape floor price falls below 30 ETH: Nifty Newsletter, July 5–11
A decentralized finance borrower used a nonfungible token representing a luxury watch to take out a $35,000 loan.
In this week’s newsletter, read about Ethereum nonfungible token (NFT) royalties hitting their lowest point in two years. Check out Bitcoin Ordinals trading volume, which hit $210 million in the second quarter of 2023, and how a decentralized finance (DeFi) borrower used an NFT representing a physical luxury watch to take out a loan. In other news, find out why Animoca Brands co-founder Yat Siu is still bullish on blockchain games, and don’t forget this week’s Nifty News, featuring a Sega executive’s opinion on play-to-earn gaming.
Ethereum NFT royalties hit 2-year low as Bored Ape floor price falls below 30 ETH
A report from blockchain analytics firm Nansen showed that royalties earned by NFT projects have reached a 2-year low. The dip may be fueled by lower NFT floor prices of popular collections like the Bored Ape Yacht Club and the Azuki Elementals launch controversy.
According to the report, NFT marketplaces OpenSea and Blur are going head-to-head with each other in terms of royalties paid. However, when the trading volume surges, Blur often takes the lead.
Bitcoin Ordinals volume hits $210 million in Q2 — DappRadar
The creation of the Bitcoin Ordinals protocol on the Bitcoin blockchain has resulted in a significant trading volume exceeding $210 million, according to DappRadar. The data highlights the surging popularity of Bitcoin Ordinals, leading to a remarkable increase in trading volume throughout the second quarter of 2023.
Starting at $7.18 million in the first quarter, the trading volume soared to $210.7 million by the end of June, representing a staggering 2834% quarterly growth. Additionally, the report reveals that over 550,000 Ordinals trades took place in Q2, involving approximately 150,000 unique traders, further contributing to the remarkable trading volume surge.
DeFi borrower uses luxury watch-backed NFT as collateral for a loan
A DeFi borrower has used a Patek Phillipe luxury watch to collateralize a $35,000 loan. The watch was sent to an escrow firm that deals with NFTs backed by physical assets in exchange for an NFT representing ownership of the watch. The NFT was then listed as collateral at the DeFi protocol Arcade and was used to borrow the money.
Some expressed positive feelings about the use of Web3 technology in lending, while others believe that it’s adding NFTs where it’s not necessary.
Animoca still bullish on blockchain games, awaits license for metaverse fund
Despite the waning interest in NFTs and blockchain gaming, Animoca Brands co-founder Yat Siu highlighted that their firm remains optimistic in the sector. In a Cointelegraph interview, Siu noted that he’s expecting AAA-rated blockchain games to hit the market by 2023.
Apart from this, the Animoca executive also noted that the company is waiting for a license before it can put its much-anticipated metaverse fund to work.
Nifty News: Sega exec calls P2E games ‘boring,’ Tom Brady’s NFT firm switches it up and more
Shuji Utsumi, an executive from Sega, the company behind popular game franchises like Sonic The Hedgehog, described play-to-earn games as “boring” and said that Sega is discontinuing its plans to develop blockchain games. Meanwhile, the NFT-focused startup of American sports star Tom Brady is reportedly moving away from NFTs, quietly removing crypto language in its materials.
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Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.