CryptoPunk’s sky-high price listing NFT bubble surges

Under the NFT boom, the “old” CryptoPunk (cryptopunk) ushered in its peak moment.

As early as 2017, the CryptoPunk project team issued 10,000 Tokens through the transformation of the ERC-20 contract. Each Token corresponds to a punk-like pixel avatar, becoming a pioneer in the NFT world. Four years later, NFT ushered in an explosion. CryptoPunk’s pixel avatars were sold for millions of dollars one after another, shocking everyone’s jaws.

On August 1, among the only 9 alien NFT pixel avatars in CryptoPunk, Punk No. 3100 was listed for sale by the holder for 35,000 ETH, equivalent to US$91.56 million. This offer is much higher than the highest transaction price of US$7.58 million set by the Punk series in March this year. Just recently, the scarcity of the two ape-man series NFTs second only to the alien series has been sold for 5.472 million US dollars and 3.759 million US dollars respectively.

The NFT data website Cryptoslam shows that the current CryptoPunk has become the most expensive collection in the NFT market. Since June 2017, the average transaction price of CryptoPunk has increased from 0.205 ETH to 56.72 ETH, a 276.68 times increase. On August 2, the Punk with the lowest price on the CryptoPunk trading market will also be 33 ETH.

In the view of NFT expert William M. Peaster, CryptoPunk is a handicraft of the Internet and encryption culture with unique historical significance. But with the price inflation of CryptoPunk, some insiders believe that it is blowing up the bubble in the NFT market.

New Yorker columnist James Surowiecki said that NFT is highly hyped. Although NFT is “unique”, it does not mean that the content corresponding to NFT is also unique. If anyone wants to take the opportunity to invest at this threshold, they need to carefully consider the risks.

NFT avatars sold for $90 million shocked the market

The popularity of the chain game Axie Infinity has brought the popularity of NFT games to a new level. As an “old gun”-level NFT collection product on Ethereum, CryptoPunk (cryptopunk) has stood in the center of the stage in this wave of craze.

According to statistics from the NFT data website Cryptoslam on August 2, CryptoPunk’s transaction volume in the past 7 days reached 48,988 ETH, or about 121 million U.S. dollars, an increase of 1251.95% from the previous month. Its transaction volume is second only to Axie Infinity, and is the second largest NFT project in the current market, ahead of  NFT markets such as NBA Top Shot .

CryptoPunk was born in 2017 and was released earlier than the famous “cryptocat”. Its production team Larvalabs issued Tokens by transforming the ERC-20 contract and generated 10,000 different pixel avatars, which were once distributed to Ethereum users for free. .

CryptoPunk's sky-high price listing NFT bubble surges

Some CryptoPunks avatars

Among the 10,000 CryptoPunks avatars, there are 9 alien avatars, 24 ape-man avatars, 88 zombie series avatars, 3840 female avatars and 6,039 male avatars. All the avatars are different and unique. Some wear burning cigarettes, some wear trendy sunglasses, and some wear pilot helmets…the pixel avatars are quite punk-shaped, because the unique attributes of NFT stimulate users’ desire to collect.

Encryption cats become history, but CryptoPunk meteoric rise in the wave of this round of NFT’s. Compared with the low price when it was first released, each pixel avatar has now risen to the sky. Larvalabs official website shows that among the Punk avatars currently on sale, the lowest price is 33 ETH, which is approximately US$86,691.66. The Punk number 9372 is still a relatively ordinary male avatar.

The most eye-catching is the most scarce alien series Punks. On August 1, Punk No. 3100, one of the nine aliens, was listed on the website for 35,000 ETH by the holder. The current price of ETH was discounted, and its price was approximately US$91.56 million. If a deal is made, it will refresh CryptoPunk’s transaction record.

Currently, the highest transaction record of CryptoPunk is held by two alien Punks, No. 3100 and No. 7804. They both traded at a price of 4200 ETH in March this year, which is worth about 7.58 million U.S. dollars based on the ETH price at that time.

CryptoPunk's sky-high price listing NFT bubble surges

CryptoPunk historical transaction price rankings

CryptoPunk is repeatedly breaking price records with the outbreak of NFT. As far as the 3100 alien Punk is concerned, it was first claimed by users on June 3, 2017. In the following days, someone bid 0.25~1.17 ETH for the acquisition, but the holder did not sell it. It wasn’t until July 6, 2017, that someone gave an offer for 8 ETH (valued at US$2,127) before the original holder reached the transaction.

Regardless of whether the deal was satisfactory to the original holder, he will probably regret it now, because Punk, the 3100 alien, sold it at a high price of US$7.58 million this year. And now, the holder of this rare Punk plans to sell it for more than ten million US dollars. The price is attracting people’s onlookers. Everyone wants to see who will take the order.

Expensive CryptoPunk blows up NFT foam

Today, CryptoPunk has become the most expensive NFT series in the market. Cryptoslam data shows that in the past 7 days, CryptoPunk related transactions have taken the top ten in the NFT market transaction price rankings.

CryptoPunk's sky-high price listing NFT bubble surges

CryptoPunk dominates the NFT transaction price list

On July 31st, Punk No. 5217 out of 24 apes was sold at a price of 2250 ETH, which was equivalent to 5.472 million US dollars. The last transaction of this Punk occurred 3 years ago, and the transaction price was only 2.5 ETH. In addition, Punk, number 2140, also changed hands at a high price of 1600 ETH on the 31st. Its purchaser was wine blogger and media mogul Gary Vaynerchuk.

After purchasing this CryptoPunk Token at a high price, many onlookers thought that Gary Vaynerchuk was stupid and that the price of buying this pixel NFT was too high. Later, Vaynerchuk responded in an interview, “I sympathize with people’s curiosity, cynicism, or controversy, but I have incredible confidence in this asset. I believe that at some point people will be The same thing was said in a painting by a master of painting.” Vaynerchuk alluded to critics who did not understand the value of CryptoPunk.

Due to the particularity of NFT, the pricing around it has always lacked a referable definition. For example, in the CryptoPunk series, if someone’s appearance happens to be very similar to a Punk, he may be willing to pay a big price to buy it, but this Punk may be worthless in the eyes of others.

NFT expert William M. Peaster believes that CryptoPunk has its historical significance-they are crafts of the Internet and encryption culture. One of the most profound and interesting things you can do on Ethereum is to buy a CryptoPunk.

It is undeniable that CryptoPunk has its charm. As one of the oldest NFT projects, it represents that original content can not only be digitized, but also encrypted, and even valued with NFT. It can also be seen from the Cryptoslam website that more and more people are willing to collect a Punk that is a product of the times at a high price.

In June 2017, the trading volume of the CryptoPunk market was only 39.583 ETH. This number did not increase significantly in the following two years. Until the NFT concept became popular in 2020, CryptoPunk created a transaction of 8267.2 ETH in September of that year. quantity. Entering 2021, CryptoPunk has reached its peak, and the transaction volume has reached tens of thousands of ETH for many months. In July of this year, the trading volume of CryptoPunk once reached 58398.4 ETH, a record high.

From the average transaction price, the selling price of CryptoPunk has been increasing since 2017. When it was first born, the average price of a pixel avatar was only 0.205 ETH; in September 2020, the average transaction price rose to 3.97 ETH; now, this number has risen to 56.72 ETH, or about 146,000 US dollars.

The price carnival of CryptoPunk has made people aware of the bubble in the NFT market. New Yorker columnist James Surowiecki said that NFT is highly hyped. Although NFT is unique , it does not mean that the content corresponding to NFT is also unique. If anyone wants to take the opportunity to invest at this threshold, they need to carefully consider the risks involved.

David Gerard, author of “50-foot Blockchain Attack”, believes that NFT purchases official collections similar to trading cards . He more directly stated that those guys are trying to come up with a new form of worthless magic. Beans, used to exchange for money.

Others in the industry have also pointed out that simple digital scarcity is an unstable foundation, and it is difficult to provide reasonable support for high prices. When CryptoPunk creates exaggerated prices, as an investor, it is not an exaggeration to think about the bubble.

It is foreseeable that the dispute about the value of NFT will continue, and the outcome of the confrontation between supporters and opponents will be judged jointly by time and the market.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/cryptopunks-sky-high-price-listing-nft-bubble-surges/
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