An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

In this article, we’ll dive into the world of the Boring Ape (BAYC), learn what they’re all about, and look at on-chain data to see if the hype is true.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

introduce

NFTs have taken over the world. Extremely expensive pixelated cartoon characters, anime-themed art, and cartoon animals are increasingly the avatars of choice for crypto investors. In this zoo, however, the Boring Ape (BAYC) is the most iconic.

The Bored Ape – Bored Ape Yacht Club (BAYC) – has become the most expensive and influential NFT collectible series. In addition to having a total market cap of over 1.69 million ETH, the series has also managed to gain recognition from the likes of NBA stars Stephen Curry, Steve Aoiki, and Jimmy Fallon, to name a few.

How did this cartoon ape JPEG collection turn into a multi-billion dollar brand in just over a year? Is BAYC really strong, or is it just the latest buzzword thrown by the “community” to gain traction?

In our first issue of More Than JPEGs, we delved into the world of BAYCs to see what they’re all about, and looked at on-chain data to see if the hype was true.

background story

How BAYC started

“Ape” and “Apeing” have strong cultural significance in cryptocurrencies. These words are often used to describe blind investing in something, usually stocks, cryptocurrencies, and NFTs. The use of the term has grown as retail interest in investing has grown during the COVID-19 pandemic. Spend some time on subreddits like WallStreetBets or Crypto Twitter and you’ll see the term appear in every other post.

According to an interview with CoinDesk, BAYC founders Gordan Goner and Gargamel imagined a bar that only members of the exclusive club could access. Apes was the preferred member of this club, and the concept of the Boring Ape Yacht Club (BAYC) was born.

April 23, 2021 is the launch date for BAYC. At 0.08 ETH or about $200 at the time, minting was practically free by today’s standards, but it took about a week for the collectible collection of 10,000 NFTs to finally sell out. No hype and no appeal.It wasn’t until a week later that Pranksy, one of the most profitable and prolific NFT collectors (currently outside the top 10 of the Nansen NFT Profitability Rankings), started giving his voice to the collectible.

grow gradually

The BAYC series is the foundation of the ecosystem Yuga Labs has built over the past year, but is not representative of the entire ecosystem. After feeling that a BYAC series was too monolithic, the Yuga team decided to create a companion collectible: about 2 months after BAYC launched, the Yuga team gave 10,000 Bored Ape Kennel Club NFTs for free Distributed to BAYC holders.

A third series, Mutant Ape Yacht Club (MAYC), will follow in August 2021. This time, the total size of the series is 20,000, double the size of the previous two series. 10,000 mutated serums were given to 10,000 BAYC holders, which allowed them to create mutated versions of BAYC. The other 10,000 were sold to the public at a minting price of 3 ETH. This time, the series sold out within an hour, and the team raised a total of $96 million.

Most recently, the team launched its fourth series: Otherside, a virtual land series for the upcoming BAYC Metaverse. The total size of the series is 200,000 NFTs, of which 100,000 will be launched on April 30, 2022, and the rest will be distributed to NFT holders who contribute to the development of Otherside. Similar to previous collectibles, existing holders of BAYC and MAYC will be able to claim their Otherside NFTs at no additional cost. The public will be able to buy the NFT for 305 ApeCoins.

The launch generated a lot of interest in the cryptocurrency space, with 112 smart currency addresses in the sale contract interacting with. Ethereum network gas prices flew from 40-70 Gwei the day before to a peak of 8,100 Gwei during minting. The spike caused an uproar on Twitter, with many users disappointed by the mismanagement of the release and the quality of the smart contracts deployed. However, Vitalik himself has responded and concluded that optimizing the contract has little impact on gas fees.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Land sale draws world attention

In September 2021, world-renowned auction house Sotheby’s sold a set of 101 Boring Apes (BAYC) and 101 Kennels (BAKC) for a total of $26.2 million, more than 30% above the upper estimate. In the same month, another famous auction house, Christie’s, also held its own BAYC NFT auction. In total, 4 bored apes were auctioned and sold for a total of approximately $2.8 million.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Source: Sotheby’s

Both auction houses are leaders in art and luxury auctions. Looking for works by Vincent van Gogh, Raphael and Leonardo da Vinci among others? Sotheby’s and Christie’s are probably where you can buy them. In the eyes of the traditional art world, the presence of BAYC in auction house auctions adds a stamp of legitimacy to such collectibles and NFTs.

sit first

A rivalry between BAYC and CryptoPunks has been brewing since the beginning of BAYC’s rise. Over the years, Punks has been known as a preeminent “blue chip” NFT asset due to its long history and dedicated community. Although BAYC’s floor price has repeatedly surpassed CryptoPunks’ floor price and finally passed 100 ETH, CryptoPunks’ OG status allows the series to arguably maintain its crown in the NFT space.

However, when Yuga Labs acquired the intellectual property of CryptoPunks and Meebits from Larva Labs, the debate over which was more influential finally died down. CryptoPunks still maintain their OG status and historical relevance, but as of today, the king of NFTs is undoubtedly BAYC.

On-chain in-depth analysis

To understand the success of BAYC and its world, let’s dive into the on-chain data provided by Nansen to assess whether the series is really the success it appears to be.

Overview

Here’s a high-level overview of the series:

  • Secondary sale of more than 528,000 ETH (data filtered through wash trades) (as of April 27)
  • The highest trading volume in a single day was 15,415 ETH
  • The 30-day average daily trading volume is about 1800 ETH
  • ~6200 holders
  • 257 Boring Apes have been held since they were minted

Yuga Labs received a 2.5% royalty on secondary sales and has received approximately 14,100 ETH (~$33.8 million) in royalties. ‍

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Source: Nansen’s NFT God Mode‌

Qualification distribution

As mentioned, the holders are over 6.2K. The series took about a week to reach 200 unique addresses, but went parabolic from May to July, reaching more than 4,400 unique addresses. About 80% of NFTs have been held for at least 60 days, and about 63% have been held for at least 90 days. This shows that on average 63% of NFTs were purchased for 93 ETH or less.The floor peaked at 150 ETH at the end of April and has since fallen to a floor of around 100 ETH. Regular buyers joined the club relatively early, but they were still breaking even or making small profits during a time when most markets were trending down.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Source: Nansen’s NFT God Mode‌

‍How sticky is the floor

In addition to checking the percentage of wallets with decent profits, let’s look at the percentage of wallets holding only 1 BAYC NFT and the balance of diamond lots to assess the sustainability of the current floor price.

The proportion of wallets with only 1 BAYC in the wallet is high. In 81% of cases, it is higher than similar collectible series in the Nansen Blue Chip – 10 Index, such as CloneX (71%), Azuki (76%) and CryptoPunks (72%). This makes it less likely that holders will sell their Boring Ape as this is the only BAYC they hold, thus creating a more resilient floor price. Also, there aren’t that many “whale” holders who can pull the price down by liquidating their collectibles.

In addition, there are currently 5,200 BAYCs that have not been sold by wallets holding these NFTs. While this number is down slightly from the all-time high of nearly 6,000 NFTs, it is one of the few series to gradually rise.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Source: Nansen’s NFT God Mode‌

We can also look at listing activity to understand the psychology of holders.

Only about 6.5% of BAYC is listed, with 0.10% within 15% of the floor price, and most are listed in the 180 – 360 ETH price range. This suggests that the majority of holders are not considering selling, while a small percentage of holders are looking for prices well above the current floor.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Source: Nansen’s NFT God Mode‌

Will smart money ape in at these prices?

Prices are high, and it seems that only degens would buy collectibles at all-time high prices. It’s hard to imagine smart money not making a profit at that price, let alone ape in.

Looking at the trends among smart money holders, two things stand out.

  • There is a gradual decline in the number of smart NFT early adopters and smart NFT traders.
  • The number of smart NFT holders and smart NFT sweepers is on the rise.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Source: Nansen’s NFT God Mode‌

Overall, early adopters have started tapering their holdings, and traders are taking profits and exiting as prices rise. Early adopters may see “financial freedom”-level profits. One of the top wallets on the BAYC Profit Rankings is a smart NFT early adopter, which made a total of 1,404 ETH in profit, a profit margin of 41,326%.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

Source: Nansen’s NFT God Mode‌

Traders typically scale up as prices rise, and as BAYC keeps pushing to new highs, it’s hard for them to stay where they are.However, smart money addresses that lean towards the long-term horizon have been increasing. This shows that they are optimistic about the long-term prospects of the series.

According to the Personal Trading Dashboard, over the past 30 days, we’ve seen that smart money is indeed still making purchases. Some of them are even buying well above the 12-hour simple moving average.

An article to understand how the NFT empire of the Boring Ape (BAYC) was formed

BAYC’s future

BAYC is poised to become a hugely influential brand with a cultural reach similar to Supreme, but a social signal comparable to haute couture brands like Gucci and Louis Vuitton (LV). As their ecosystems grow and develop, so does their impact and significance. The launch of ApeCoin, ApeCoin DAO and the Virtual Land Collection further cements their place in the Web3 world. More mainstream partnerships like the adidas partnership and a trilogy of BAYC films in the pipeline will help spread BAYC’s mindshare among the masses.

With holders given full commercial rights and control over their NFTs, we could see a future in which individual BAYCs become celebrities by virtue of their own rights. Brands and films may use striking BAYC imagery or BAYC with specific characteristics may appear in their advertisements or films.

Between these mass media touchstones and the upcoming virtual world of “Otherside”, the Bored Ape Yacht Club (BAYC) is now pioneering the meaning of culturally significant NFT collectibles.

in conclusion

BAYC has evolved from a simple JPEG NFT to a broader ecosystem that is becoming as culturally influential as brands like Supreme. Their meteoric rise is virtually unheard of and unparalleled for both mainstream fashion brands and crypto-based projects.

While everything they’ve achieved so far has been impressive, to say the least, this may just be the beginning of a larger universe they’ll be creating. Holder activity suggests that both degens and smart money are similarly optimistic about BAYC’s future. The team dreams of a world ruled by BAYC may not be far-fetched, and BAYC may become the ruler of the Metaverse.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/an-article-to-understand-how-the-nft-empire-of-the-boring-ape-bayc-was-formed/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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