- Rare Cryptopunk owner plans to sell the pixelated non-fungible token collection for $91 million.
- NFTs beat traditional crypto assets in terms of profitability for traders; market sentiment drop and uncertainty do not influence the price.
- Over $11 million worth of a new NFT collection of Pudgy Penguins sold on secondary markets in the past 24 hours.
NFTs are attracting users due to their uniqueness and higher profit-booking opportunities on peer-to-peer marketplaces.
Pudgy Penguins NFT collection fetches $11 million on secondary markets
Crypto traders are flipping NFT collectibles and digital art for over tenfold profits on peer-to-peer marketplaces. The first-ever NFT was created in May 2014, live at the Seven on Seven conference at the New Museum in New York City.
Following this experiment, Etheria, a fully-fledged NFT project, was launched at Ethereum's first developer conference DEVCON 1. Etheria offered 457 purchasable and tradable hexagonal tiles (each hardcoded to 1 ETH) that went unsold until a renewed interest in NFTs attracted users.
On March 13, 2021, all of Etheria's tiles of the current and prior versions sold for $1.4 million. Since then, NFT projects have lured crypto enthusiasts and art collectors due to their exclusive offerings like membership to clubs or events.
In the first week of August 2021, the monthly USD value transferred for the top seven NFT marketplaces has hit $356 million. OpenSea has captured 97% of the NFT transfer volume.
The daily trade volume on OpenSea averages between $40 million to $60 million based on DuneAnalytics data.
Daily trade volume on OpenSea
The most popular NFT on OpenSea is Cryptopunks, a pixelated NFT collection that clocked over 1,000 sales for a total of $166 million in the first week of August. The owner of the rare Cryptopunk wants to sell it for around 35,000 ETH or $91.64 million. The rare NFT sold for $2 million in its last transfer on OpenSea.
NFT prices are not affected by market sentiment or other factors that influence crypto prices. That explains why the owner is pricing his NFT over 45 times above the last traded price.
Another NFT collection that is currently popular among crypto enthusiasts is Pudgy Penguins. The collection has a total of 8,888 penguins, and the limited supply is driving the demand higher. Over $11 million worth of digital Penguins has been sold on secondary markets within 24 hours of launch, on August 11.
The NFT collector and trader behind the Twitter handle @notEezzy shares that it is easy to flip NFTs for profits.
NFT flipping literally soo easy wtf
— notEezzy (@notEezzy) August 9, 2021
4 days, 18x profit, $300 to $5,500 pic.twitter.com/PdRWGyK7n1
@notEezzy has previously flipped NFTs to turn $600 into $56,000 in a few trades on OpenSea, and he shared the transfer details in a Twitter thread.
While NFTs are currently in demand, some experts are concerned about the speculation around prices and the uncertainty in profit booking. Ari Paul, founder of Block Tower, a blockchain investment firm, tweeted:
If you’re buying NFTs because you want to own provably scarce art, that’s awesome. If you’re buying NFTs that pumped 100x in the last 6 months as speculation..careful. If you’re not part of the insider pump group, you’re probably gonna lose money. Almost guaranteed in aggregate.
— Ari Paul ⛓️ (@AriDavidPaul) August 12, 2021
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Why crypto may see a recovery right before or shortly after Bitcoin halving
Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.