The rise of NFTs in 2021 saw Bored Ape Yacht Club (BAYC) quickly become one of the most coveted and talked-about collections in the crypto art space. With high-profile buyers, celebrity endorsements, and jaw-dropping sales prices, these pixelated apes turned into symbols of status and wealth. However, for those who purchased BAYC NFTs during the market’s peak, the investment story has taken a dramatic turn for the worse.
As of 2024, investors who bought Bored Ape NFTs at their highest valuations have experienced a staggering 93% decline in the value of their investment.
The Rise of Bored Ape NFTs: A Look Back
Launched in April 2021 by Yuga Labs, the Bored Ape Yacht Club featured 10,000 unique cartoon apes with different traits and rarity levels. The collection quickly garnered attention, with notable buyers like Snoop Dogg, Eminem, and Jimmy Fallon snapping up these digital assets. At the height of the NFT craze in late 2021 and early 2022, some Bored Apes sold for millions of dollars, with the floor price (the minimum price for an Ape) soaring to around 152 ETH (about $425,000 at the time).
This period marked the peak of speculative hype around NFTs, and BAYC became the poster child for the rapid ascent of digital collectibles.
The Decline: From Millions to Fractions
Unfortunately, the speculative bubble surrounding NFTs has largely burst since 2022, and the prices of most collections—including BAYC—have plummeted. According to recent data, the floor price of a Bored Ape has dropped from its peak of 152 ETH to just 28 ETH in August 2024. Given the current market value of Ethereum (around $1,600), this translates to a floor price of approximately $45,000—a far cry from the six-figure values seen just two years ago.
In dollar terms, this equates to a 93% drop in value for those who purchased their Apes during the height of the market. An individual who spent $425,000 on a Bored Ape in 2021 now finds their NFT worth only $45,000, leading to significant losses.
Factors Contributing to the Collapse
Several factors have contributed to the sharp decline in the value of Bored Ape NFTs:
- The Broader Crypto Market Downturn: The collapse of the crypto market since late 2021, driven by macroeconomic conditions and regulatory uncertainty, has taken a toll on NFTs. As Bitcoin, Ethereum, and other digital assets lost value, so did NFT prices.
- Decreased Speculation: During the peak of the NFT bubble, a significant portion of buying was speculative. Investors rushed to acquire NFTs with hopes of flipping them for higher profits. As the speculative frenzy died down, so did demand for overpriced collections.
- Increased Supply and Saturation: The NFT space became increasingly saturated with new collections and projects, which diluted demand for existing collections like BAYC.
- Utility and Value Challenges: While BAYC has built a strong community and even launched spinoffs like Mutant Ape Yacht Club and Otherside Metaverse, the broader question of long-term utility for NFTs remains unanswered. As buyers look for more tangible value from their digital assets, the appeal of owning a Bored Ape for status alone has diminished.
What’s Next for Bored Ape Investors?
Despite the steep decline in value, BAYC remains a cornerstone of the NFT market, and Yuga Labs is still actively developing its ecosystem. The upcoming launch of Otherside, a metaverse project built around BAYC, could offer some new utility and value for Ape holders.
However, for investors who bought at the top, the road to recouping losses is long and uncertain. The NFT market remains highly volatile, and it’s unclear whether the days of six-figure sales for Bored Apes will return.
Final Thoughts: Lessons Learned
The collapse of Bored Ape prices serves as a cautionary tale for investors in speculative markets. While NFTs represent exciting new opportunities in digital ownership and culture, the speculative bubble that formed around BAYC and similar collections highlights the risks involved in chasing hype-driven assets.
As with any investment, diversification and a focus on long-term value creation remain critical to minimizing risk in volatile markets like NFTs.
