As the web3 digital asset market continues to decline, the Ethereum (ETH) floor price of the most significant NFT collection has slipped to one of its lowest levels since the start of the year.
Over the past week, the floor price of the Bored Ape Yacht Club (BAYC) NFT collection has decreased by more than 20%, putting it below 50 ETH, according to available data.
BAYC’s floor price, the minimum amount a person must pay to get into an NFT collection, is currently at 49.61 ETH, equivalent to $62,626.06. According to data from CoinGecko, the floor price has been in a downtrend after reaching an all-time high of 153.7 ETH in May this year.
On the other hand, BAYC’s closest rival CryptoPunks has a floor price of 66.49 ETH and a market cap of $835,670,234. Yet, the Bored Ape collection remains the top-rated despite having a significantly low market cap of $627,584,408.
Furthermore, Bored Ape NFTS, purchased with loans from the peer-to-peer lending platform BenDAO, may face liquidation as the collection’s floor price continues falling. BenDAO allows users to borrow up to 40% of an NFT’s floor price. If the loan repayment fails and the NFT’s floor price drops to the point where its “health factor” is less than 1, the NFT will go on sale in a 48-hour auction to the highest bidder.
The health factor is a numeric representation of the safety of deposited NFT against the borrowed ETH and its underlying value. Most of BAYC’s NFTs have health factors above 1.0