Author: 0xSevens.lens & Wangzai

Looking back a year after the Terra crash, the overall trading volume of the NFT market, the new issuance of NFTs, and the prices of top blue-chip NFT projects are all showing a downward trend, with niche NFTs in the end market even dropping to zero.

Analyzing the reasons for this freeze from shallow to deep:

1. The liquidity withdrawal from the NFT market;

2. NFT players lack confidence in the future market and are liquidating their holdings;

3. Blue-chip NFTs in NFT lending protocols are facing FUD caused by whale sell-offs and Blur farmers dumping.

From the data, the time of Terra's collapse was not the lowest point for most NFT prices in the market; the majority of NFT price lows hovered around April 2023, and the trading volume has shown a continuous downward trend.

Yuga Labs

From the perspective of the leading players in the field, Yuga Labs has launched Dookey Dash, the Bitcoin NFT series TwelveFold, and the second test of Otherdeed, but has not introduced any new narrative gameplay to attract more players' attention and liquidity. The speed of ecosystem expansion far exceeds the achievable benefits.

In addition, the NFT series within the Yuga Labs ecosystem has further expanded but has not performed well in terms of price. Koda's price before being separated was around 14 ETH, and the floor price of land before element splitting was 2 ETH. Now, the floor prices of both series have been halved.

LimitBreak

Not only Yuga Labs, but LimitBreak also faces this issue, as the diversification of NFT assets within its ecosystem has distracted players' attention and liquidity, leading to a decline in NFT series prices and further undermining HODL confidence in the bear market.

BAYC

Furthermore, following the FTX incident, NFT whales represented by Franklin have been continuously selling their monkeys and other blue-chip NFTs. This indirectly led to the spread of anxiety and panic among other NFT holders, causing market confidence to plummet.

Looking back at the trading volume of BAYC over the past year, we observed a surge in trading volume in February of this year (02.24), with many large holders fleeing according to Parsec data.

One potential reason is that Blur's bid mining reward mechanism provided a large amount of liquidity to the market while accelerating the process of the NFT market bubble bursting. (Related link)

The Most Resilient Blue Chips

Among the 32 "old blue chips," only 13 projects saw price increases, while most "blue chips" experienced declines of around 40%-90%, and the returns from holding blue-chip projects were far from the expected Alpha returns. NFTs that performed well also saw significant increases in their derivatives, such as Milady and Redacted Remilio Babies, Azuki and BEANZ, Pudgypenguin and Lil Penguins.

Among the top 15 NFTs by trading volume, only the holders of CryptoPunks, Milady Maker, Azuki, and Pudgy Penguins have seen positive returns over the past year. (Among them, Azuki experienced a community trust crisis in May last year, with various scandals exposed, leading community holders to sell NFTs at the lowest prices at that time.) The NFTs that truly hold investment value are: Milady Maker, Pudgy Penguins, and CryptoPunks.

Of the 27 projects launched within the year, 15 projects saw price increases, while 12 projects showed a downward trend, with OpepenEdition, Redacted Remilio Babies, and Nakamigos seeing increases of over 10 times. Overall, newly launched projects with high trading volumes and returns have experienced smaller declines compared to older NFT projects.