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NFT OKEx Insights NFT Snapshot

Memes find a home among NFTs, Topps MLB sale hits snag

2021.04.27 Robbie Liu

NFT investors are seemingly growing tired of celebrity-backed collections as the overall market cools. 

Nonfungible token collectors seem to have cooled on celebrity-focused offerings, but sports remain good business in the NFT market. At the same time, viral image creators are starting to turn a profit by minting NFTs, and an advanced index token has been designed to better respond to changes in the price of CryptoPunks.

Here's everything you need to know about these stories in this week's NFT Snapshot from OKEx Insights. 

Eminem's first NFT sale seemingly disappoints

Nonfungible tokens have become popular among musicians in 2021. Following the likes of Snoop Dogg and The Rolling Stones, legendary rapper Eminem launched his own NFTs on Sunday, with each containing a unique beat produced by himself. However, judging from the number of sales, the launch seemingly failed to meet expectations. For example, the open collections carrying a price tag of $313 allowed for up to 9,999 purchases on Nifty Gateway, but only 2,368 editions were minted during that time. 

Eminem launched his NFTs on Nifty Gateway. Source: Nifty Gateway

Viral images steal spotlight in NFT market

At a time when collectors are seemingly tiring of celebrities' NFTs, enthusiasm for viral images is soaring after "Nyan Cat" was sold for a whopping 300 ETH — worth $750,000 at the time of sale — opening the door for meme creators to wrap their viral images into nonfungible tokens. 

Last week, one of the internet's most recognizable images, "Disaster Girl," was sold for 180 ETH ($450,000) on NFT marketplace Foundation. The proceeds went to Zoe Roth, the child flashing a devilish grin in front of the burning house, more than a decade after the photo became a meme on the internet, illustrating the possibility that NFTs may shift the capitalization of social moments and memes. 

One of the most recognizable viral images, "Disaster Girl," sold as an NFT more than a decade after it was taken. Source: Foundation

CryptoPunks remains top NFT project, despite drop in volume

According to on-chain data provider Dune Analytics, more than 100,000 registered users have made at least one transaction on NFT marketplace OpenSea. As we can see from the monthly chart of active users, March was the most frenzied time for the NFT market — but it has cooled off a bit in April. 

The number of monthly active users on OpenSea declined in April. Source: Dune Analytics

On the top collections list, Topps, the biggest name in the physical baseball cards market, jumped into the NFT space last week after the company released its 2021 Series 1 NFT collectibles. Major League Baseball's broad fanbase led to $3.5 million in volume for the Series — but the launch was not exactly a success. A large number of collectors flocked to the WAX protocol-based application, but many were unable to complete their payments, due to the lack of a queue system. 

Topps MLB is among the top NFT projects with $3.5 million in weekly volume. Source: DappRadar

With half a month to go before Christie's auction of nine rare CryptoPunks, the rest of the collection has seen a drop in both volume and sales of nearly 40% after its previous hype. However, the floor price of an average CryptoPunk remains stable at a high price of 20 ETH ($500,000), and this has helped the collection hold on to the top spot in the volume rankings. 

Moreover, Larva Labs, the creator of CryptoPunks, is in the process of sending out a new NFT project aimed at lowering the barrier for mass adoption. Although not much information has been revealed so far, collectors, on the other hand, are looking forward to the new project. 

Looking at NBA Top Shot, the most popular blockchain-based game saw a 27% decline in volume — despite dropping the latest Premium Pack on Wednesday. 

Advanced synthetic NFT Index releasing soon

uLABS, a unit under synthetic asset protocol UMA, has designed an advanced NFT index token that reflects the price of CryptoPunks. The so-called uPUNK Index is calculated by taking the median transfer price of all CryptoPunks over the past 30 days in order to best capture the price trend of this collection and minimize price manipulation. 

The median transfer value over a 30-day period gives a more effective indication of the combined price trend for both common and rare CryptoPunks. Moreover, the index removes extreme high or low values in any period to avoid being skewed. To avoid "wash trades," one NFT would only be counted once in the index's computation. 

uPunk Index can better reflect the price change of CryptoPunks. Source: uLABS

Since the synthetic CryptoPunks index token is collateralized with ETH and does not require the deposit of an NFT, investors may now create short positions on CyrptoPunks if they think this collection is overpriced. Short-sellers may simply deposit ETH to mint the uPUNK token and then sell it into the liquidity pool.

This advanced index is subject to a community vote in the coming weeks. Once the proposal passes, uLABS will create a uPunk token — which will expire on July 31 — with UMA's Expiring Multi Party contract on Uniswap. 

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.