In a way, Yuga Labs’ Bored Ape Yacht Club paved the way for the crossroads between crypto and pop culture. The NFTs, which illustrate images of cartoon monkeys with unique features, have attracted investment from NBA superstar Stephen Curry to billionaire Dallas Mavericks owner Mark Cuban. Each monkey’s clothing, background, and eyes, among other characteristics, determine the overall rarity of each Bored Ape NFT. The rarer the monkey is, the more it sells. This is a common practice in NFT projects, giving each owner a unique NFT.
Although each monkey is unique, some traits have increased its rarity and price. Some of the most coveted features include laser eyes, a solid gold coat and a royal crown. There are far fewer NFTs with these properties than others. For example, out of the 10,000 existing NFTs, only 46 have a solid gold skin. The cheapest bored monkey with a gold coat sells for more than $ 3.3 million, while cheaper bored monkeys sell for around $ 300,000. While all Bored Ape Yacht Club NFTs have extremely high prices, they have some rare features that make them even more expensive.
A bullish scenario?
Although it is impossible to determine an exact market value for an NFT project, the total value of all NFTs in the project is estimated to be between 1,000,000 and 1,500,000 Ethereum. This amount corresponds to a sum of 2.8 to 4.1 billion US dollars. However, these are estimates based on transaction history. Over the entire period, over 540,000 Ethereum – nearly $ 1.5 billion – has been spent on Bored Ape Yacht Club NFTs. In the last 30 days, the average selling price was just below 140 Ethereum and 442 NFTs were sold.
Should investors sell right away? Or is it worth investing in China Petroleum, Chemical Sinopec?
An optimal scenario for the Bored Ape NFTs would be a huge increase in the reserve price. For that to happen, the creators of the Bored Ape Yacht Club, Yuga Labs, had to come up with some pretty big announcements regarding plans for the future. For example, when ApeCoin came on the market, the minimum price rose by almost 40 percent overnight. Many hoped to secure the lost coins from the release. Yuga Labs has indicated that it will try to get into gaming and Metaverse and that it has plans for interoperability with other major NFT projects. If the group is able to create real use cases in the metaverse or gaming world, the market may see a price increase again.
The absolute worst case scenario for the Bored Ape Yacht Club would be a complete crash of the floor. This can happen in several scenarios. First, if Yuga Labs becomes unable to develop new projects and stagnates in terms of growth, Bored Apes may suffer. Some Bored Apes owners keep their NFTs in hopes of future use and rewards, so a lack of these can lead to a massive sale. On top of that, the Bored Ape Yacht Club is housed on the Ethereum blockchain. If the Ethereum merger does not go well and many start migrating to other blockchains, then a divestment in Bored Apes would lower the reserve price.
Although the Bored Ape NFTs are among the most popular NFTs, they are still a rather speculative source of investment. The Bored Ape NFTs have limited use and the price can drop at any time. Still, there is a chance that they will increase in value. If investors are willing to take on the high risk and scale of the investment, this can be a viable option.
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