what’s next for the market?

Amid Yuga Labs’ restructuring, how are investors and collectors reacting to the changing situation in the NFT market?

Yuga Labs, the company behind the wildly popular Bored Ape Yacht Club (BAYC) NFT collection, is in progress a restructuring effort.

The move comes during a difficult period for the company, marked by a sharp decline in the value of its flagship NFTs and the need to realign its strategic direction.

CEO Greg Solano recently shared a candid message about X, acknowledging the company’s struggles and outlining the path forward.

Solano cited the importance of regaining focus and agility, positioning Yuga Labs as a leaner, more efficient, and deeply crypto-savvy organization.

One of the key initiatives of Yuga Labs’ restructuring plan is the divestiture of certain gaming projects. Two notable companies, HV-MTL and Legends of the Mara, were acquired by game studio Faraway.

Additionally, Yuga Labs places renewed emphasis on its Otherside metaverse project. Launched at the height of the NFT boom in 2022, Otherside aims to create a digital universe where users can interact, create and trade NFTs.

Despite the market challenges, Yuga Labs has mentioned its intention to move forward with this ambitious initiative.

The crypto community’s response to Yuga Labs’ restructuring has been mixed. While some have expressed support for the company’s efforts to adapt and evolve, others have raised questions about the future direction of its NFT offerings.

Current performance of BAYC NFTs

Following the announcement of Yuga Labs’ restructuring efforts, the performance of its flagship BAYC NFT collection has seen a notable improvement.

As of April 30, BAYC NFTs have seen an 80% increase in trading volume over the previous 24 hours, with around 1,300 ETH traded in the last 24 hours, which equates to around $4.2 million.

The estimate market capitalization of BAYC NFT amounts to approximately 147,139 ETH, or approximately $466 million. This represents approximately 11% of the total NFT market cap of $4.23 billion.

Aside from trading volume and market capitalization, the number of BAYC NFT sales also saw an increase of over 52%, reaching 96.

NFT Market Performance

The NFT market has seen an uptick in activity and growth, with various blockchains and projects seeing a notable increase in sales and prices.

Ethereum: Ethereum (ETH) has the highest sales volume of the previous 24 hours to April 30, with nearly $9 million. However, Ethereum has seen its monthly volume has fallen more than 57% since March to around $250 million.

Source: CryptoSlam

Bitcoin: Bitcoin (BTC) recorded nearly $7.5 million in NFT sales in 24 hours, the second largest in the industry. Bitcoin generated $542 million in total NFT sales in March, its best month since last December, and a 70% increase from the previous month.

Solana: Solana (GROUND) took third place as of April 30 with $4.7 million in sales over the previous 24 hours, a 52% increase in daily sales. Solana had its most successful month for NFTs this year in March, with over $250 million in sales, an increase of approximately 16% from February. The average sale price of Solana-based NFTs in March exceeded $100 for the first time since April 2023.

Source: CryptoSlam

Overall, NFT prices are increasing across all blockchains, with the average sale price reaching its highest level in almost two years on some chains.

If this trend continues, we could see a surge of interest and investment in the NFT space.

What to expect next?

TechNavio’s analysis projects an expansion of the NFT market, with a compound annual growth rate (CAGR) of 30.28% between 2024 and 2028, reaching a market size of at least $68 billion.

In 2024, TechNavio projects year-over-year growth in NFT market capitalization of at least 23.27%.

Geographically, North America and Europe are leading NFT adoption. However, data from Metavr.rs shows that Singaporeans, Chinese and Venezuelans were the most active NFT traders in 2023.

Interestingly, Thai women showed greater interest in NFTs, with 30% of them collecting them compared to 23% of men.

On the other hand, 70% of Americans do not know what NFTs are, which highlights the untapped potential of the American market.

In France, 3.5% of the population has purchased NFTs, and almost half of young French people aged 18 to 24 are open to purchasing NFTs.

However, as governments around the world take a closer look at the crypto space, more rules and regulations are expected, which could also impact NFT markets. Additionally, the general volatility in this space could make or break the game.

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