{"id":141182,"date":"2023-09-01T22:06:31","date_gmt":"2023-09-01T16:36:31","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=141182"},"modified":"2023-09-01T22:06:31","modified_gmt":"2023-09-01T16:36:31","slug":"rising-tide-or-sinking-ship-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/rising-tide-or-sinking-ship-crypto-news\/","title":{"rendered":"Rising tide or sinking ship – Crypto News"},"content":{"rendered":"

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A rising tide or a sinking ship?<\/p>\n

Last week, OpenSea announced that they will stop enforcing royalties beginning next year. It\u2019s a polarizing decision that is many things at the same time \u2014 bold, narrow-visioned, and above all else, probably inevitable. One thing is for sure, it\u2019s market-impacting.\u00a0<\/p>\n

You can\u2019t call OpenSea\u2019s decision right or wrong, because it\u2019s both depending on who you ask. Tech purists may argue that digital ownership means we own our assets and don\u2019t want to be told what we must do with them. Creators on the other hand will say that you\u2019ll have no non-fungible tokens (NFTs) if there\u2019s no incentive for them to create them. They\u2019re both right.\u00a0<\/p>\n

The full impact of their new policy hasn\u2019t come close to being realized yet. Yuga Labs is now making plans to prevent their NFTs from being traded on OpenSea entirely, while Mark Cuban called their decision \u201ca HUGE mistake\u201d.<\/p>\n

Already the value of NFTs has plummeted by almost 6%, with nearly all of it representing a reaction to OpenSea.<\/p>\n

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Last week\u2019s average sales prices took a huge hit after the announcement, falling to just US$26.29, the lowest since NFTs average sale price of US$24.98 the week of Aug. 17, 2020. Value is evaporating and traders know it. Sellers\u2019 losses fell to US$9.5 million, and it seems that they\u2019re increasingly looking to exit positions with whatever returns they can get.\u00a0<\/p>\n

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Bored Ape Yacht Club\u00a0#8585<\/strong><\/a>\u00a0is a perfect example of the hits traders are taking to their investments, which sold over the weekend for US$255,000 (153 ETH), a huge loss from its last sale of US$1.03 million (777 ETH).<\/p>\n

While there\u2019s no denying that value is sinking, more emphasis needs to be put on the parts of the NFT market that are growing. Last week\u2019s 3,701,871 total transactions is an all-time high for NFTs, and we reached that\u00a0milestone<\/a><\/strong>\u00a0with 36% fewer sellers and 67% buyers than the previous high during the week of Feb. 14, 2022. Traders who are here are more engaged than ever, and the infrastructure that has been built around that action is designed to scale. That\u2019s good because we\u2019re going to need it for the next run.\u00a0<\/p>\n

So back to the opening question \u201cis the NFT tide rising or is the ship sinking?\u201d. Like the royalty dilemma, it\u2019s both at the same time. Your answer depends on one of two things, were you here for profits alone, or were you here to witness technical innovation and a cultural phenomenon? Now you have your answer.\u00a0<\/p>\n

Peep the charts<\/h2>\n
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