Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

Watching Ethereum is like watching a TV show that moves forward 1 frame every 12 seconds.

As a transparent ledger, we can see the progress story of each new block of Ethereum, new events in the Ethereum soap opera will be attached to the blockchain, and we can watch the drama unfolding in real time together.

This is how it feels to watch “Ethereum TV” this weekend. Here are my concluding explanations of the events that have occurred in the past few days, the weeks before the events, and the upcoming events in the future:

1. EIP 1559 goes live this week. It will play an important role in the overall story of Ethereum. After that, all eyes will be on the Merge.

2. At the same time, the “NFT bear market” is actually an opportunity to grab NFT land, and the larger market has finally realized it.

3. With the development of Ethereum, more and more people believe that Ethereum will become the dominant player in the world’s value settlement layer.

4. If #3 becomes true, then OG Ethereum artifacts will have a crazy premium. People who bought CryptoPunks and ArtBlocks NFT this weekend are actually optimistic about the dominant position of Ethereum as the value settlement layer, and also optimistic about it as the cultural transmission layer of the Internet.

Grab something on the table

CryptoPunks was already a very hot market last week, but when someone bought a knitted hat ape cryptopunk for 1,600 ETH ($3.7 million), things took a new turn.

The buyer turned out to be Gary Vee (remember we invited him to be a guest at Bankless?)

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

And three hours later, someone followed to buy a golden chain ape cryptopunk with 2,200 ETH (5.5 million US dollars).

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

…Then, it was rumored on Twitter that Three Arrows Capital (3AC) led by Su Zhu and Kyle Davies purchased 100 different CryptoPunks, and even negotiated with miners to ensure that the CryptoPunks they purchased were included in the same block. middle.

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

Later, everyone discovered that it was not 3AC who bought a large amount of CryptoPunk this time, but a member of the CryptoPunk community. He “swept away” all the cheap CryptoPunk that could be bought.

Of course, Three Arrows Capital (3AC) is indeed buying CryptoPunk and other “blue chip” NFTs.

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

All this is enough to drive the CryptoPunk market into a frenzy last weekend, and almost all indicators have hit a record high, including total sales, independent new buyers, average value (USD), and total transaction volume.

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

“CryptoPunks” even started to become popular on Twitter.

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

Punk mania has also had a huge impact on other NFTs, and many NFTs have experienced substantial increases in floor prices.

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

Since 3AC increased its acquisition efforts, the floor prices of these projects have experienced a surge:
Punk floor prices rose from 22 ETH to 34 ETH
Autoglyph floor prices rose from 120 ETH to 385 ETH
Fidenza floor prices rose from 19 ETH to 37 ETH
Ringer floor prices The
floor price of Eternal Pump increased from 17 ETH to 35 ETH from 65 ETH to 250 ETH

Why now?

So why does this happen? What was special about Punk’s enthusiasm last Friday and Saturday?

In the past few months, you may have heard the term “NFT bear market”. This sentence was mainly spoken by those who did not pay attention to the NFT industry. They took the NFT industry as a whole and then came to a conclusion like this.

When many speculators were burned and left, there was a deep quality consolidation in the NFT world… which eventually led to a shortage of supply in the secondary market.

The Punk frenzy this weekend is the result of a frantically snatching the remaining supply of OG Ethereum culture NFT. Participants bet that Ethereum is moving towards the full mainstream.

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

If Ethereum becomes the settlement layer of value, then it will also become the settlement layer of culture.

The bankless theory believes that crypto protocols like Ethereum will become the world’s value settlement layer. CryptoPunks and other basic NFTs that have a deep connection with Ethereum are the earliest cultural products of this revolution, and therefore are inseparable from the agreement itself.

As Ethereum gains global recognition, the NFT, which represents the core part of Ethereum itself, will also gain global recognition.

The Crypto revolution is not just a revolution in currency and finance, it will also manifest itself as a revolution in art and culture. I believe that with the slow rise of Ethereum, enough people will adapt to this reality, consciously or unconsciously, and feel FOMO as part of the OG NFT project.

This eventually led me to pull the trigger on Punk #1118:

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

My mother doesn’t understand why I bought a CryptoPunk with real money… This article is for you, mother?

NFT project pushes up the price of Ethereum gas

Last week, several new NFT projects triggered the Ethereum gas price to soar to more than 1,000 gwei many times.

The Stoner Cats NFT of Mila Kunis sold out in 35 minutes, which triggered some memories of the 2017 ICO boom, which also caused the gas price to soar to 1500 gwei.

Why CryptoPunk repeatedly auctions sky-high prices: Investors show up

Just a few hours after Stoner Cats were all sold, the Vogu Collection NFT sales activity caused the gas price to rise above 1,000 gwei, and the recently released art NFT also caused the Ethereum gas price to rise above 100 gwei.

Obviously, NFT is very popular now, and the market has just realized that the “NFT bear market” meme has always been just a meme.

Most importantly, EIP1559 will be activated this week!

All these NFT craziness manifested before EIP 1559 went live (expected this Thursday).

Looking to the future, all NFT speculation and minting activities on Ethereum will burn ETH. Last week’s data shows that NFT demand alone is sufficient to generate meaningful block space demand for Ethereum.

NFT is just one of the many active and good things in the Ethereum ecosystem.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-cryptopunk-repeatedly-auctions-sky-high-prices-investors-show-up/
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