The depressed Canadian bear market sent the NFT market into a cold winter.
Opensea, the market leader, saw a 13-month low in daily trading volume of $6.81 million on the 19th, according to Duneanalytics, including BAYC, MAYC, CryptoPunks…
The floor prices of blue chip projects such as Moonbirds, Doodles, CloneX and Azuki also plummeted by more than 30 percent in June, while the floor prices of top PFP projects such as Moonbirds, Doodles, Clonex and Azuki also dropped significantly in July.
MAYC, Moonbirds, Doodles, CloneX, Azuki floor prices have dropped significantly since July BendDAO liquidated 12 NFT collateral since 8/14 on Thursday (18), analyst Cirrus had tweeted a warning,
There are 32,267 Ethereum (about $59 million) blue-chip NFTS on the NFT mortgage lending agreement BendDAO that are being used as collateral for loans, raising the risk of a “liquidation spiral” that could erupt if the market falls further.
Delphi Digital, a digital asset analysis firm, said yesterday that BendDAO had liquidated 12 NFT collateral for ETH loans since August 14.
Currently, 1,028 NFTS worth 30,641ETH(approximately $50.22 million) are held as collateral on the platform.
The chart shows that MAYC, BAYC and Azuki are the top three NFT blue-chip projects used as collateral on the platform. The NFT collateral for liquidation auction has climbed to 30. According to BendDAO, the number of NFT for liquidation auction due to low health coefficient (<1) has increased significantly to 30, among which BAYC has 2.
MAYC accounted for the largest number with 14, while CloneX was second with 11.
Doodles came in third with three.
The lowest bid amount for the first BAYC#533 clearing auction in the list must be higher than 67.002ETH.
After the 48-hour auction period, the highest bidder will be able to clear the loan and become the new owner of the NFT, according to the system. (If the bid fails, users’ wallets will be returned with WETH.)
Calculation formula of health coefficient =(floor price * liquidation threshold)/(loan + interest) At present, there are nearly 40 BAYC health coefficient approaching liquidation auction risk (<1.1) on BendDAO platform, plus dozens of blue chip NFT such as MAYC, Doodles, CloneX and Azuki approaching liquidation threshold.
If floor prices fall further, the risk of a liquidation spiral rises.
But if more liquidations result in a domino effect, Cirrus said, this could also be one of the best times ever to buy MAYC and BAYC.
() Remind cryptocurrency and NFT markets are volatile, so be careful to assess the risks before investing.