NFT market crash wipes out 97% of Bored Ape Yacht Club's peak value

The value of high-profile NFT collections has collapsed in recent years. Bored Ape Yacht Club, once a favourite among celebrities like Justin Bieber, has lost 97% of its peak value. Other major collections, including CryptoPunks and Mutant Ape Yacht Club, have also seen dramatic declines.

Four years ago, NFTs were a booming market, with over US$2.7 billion in trades at its height. Celebrities like former All Black Dan Carter and rapper Snoop Dogg openly promoted them. Justin Bieber reportedly spent over US$1 million on Bored Ape Yacht Club NFTs, which then had a floor price of US$394,764. Today, that same collection is worth around US$12,000.

The crash has been severe. Bored Ape Yacht Club has lost roughly 95% of its value since 2021, while CryptoPunks and Mutant Ape Yacht Club have dropped by 89% and 98% respectively. Factors behind the decline include the 2022 crypto market crash, stricter regulations, and shifting interest toward AI and other blockchain technologies. A 2023 study found that 95% of 73,000 NFT collections were valued at zero ether.

Not all NFT projects have suffered equally. Damien Hurst's The Currency project, for example, has only lost about 10% of its value. However, experts remain sceptical about a recovery. University of Otago senior lecturer Olivier Jutel doubts NFTs will see a resurgence. University of Auckland commercial law professor Alex Sims compares the NFT bubble to the dotcom era, arguing that while the technology may have potential, many NFTs were overvalued.

Investors are now being urged to exercise caution. Swyftx NZ country manager Paul Quickenden recommends assessing a project's business case, team reputation, and market conditions before committing funds.

The NFT market has shrunk dramatically from its 2021 peak. Once-high-flying collections now trade at a fraction of their original prices. While some projects retain value, analysts warn that the era of speculative NFT hype is likely over.