- Yuga Labs embarked on job cuts as part of its restructuring efforts.
- Interestingly, BAYC NFTs have managed to hold on to value longer than cryptocurrencies.
If you are into NFTs, chances are that you are familiar with the Bored Apes Yacht Club (BAYC). It is one of the most successful NFT projects in the world. Well, Yuga Labs, the NFT project that created BAYC is now experiencing a tumultuous phase.
The NFT market was quite hot not so long ago. However, crypto winter marked the end of the hype and as such, interest in NFTs has dwindled. Yuga Labs’ latest announcement offers insights into just how bad things have gotten.
According to the announcement, Yuga Labs plans to trim its work force as part of its restructuring efforts. This is a testament to the decline of the NFT market and demand in the segment.
Yuga Labs is announcing a restructuring that will better focus our team on our core priorities. While certain roles have been impacted, these changes are necessary to evolve as an organization.
For more see a note written by @dalegre on our https://t.co/722YfqwaCB official blog.— Yuga Labs (@yugalabs) October 6, 2023
Is there a silver lining?
The fact that one of the most successful NFT projects is struggling to stay afloat is an indicator that the NFT market might be on life support.
However, that may not necessarily mean that it’s over. Yuga Labs did mention that the restructuring reflects the need to evolve as an organization. In other words, Yuga Labs now has to come up with a new strategy that can elevate it back to its former glory.
In the NFT market’s defense, the downside cuts across the board in the digital assets space. Even Bitcoin and altcoins were not spared by the ongoing crypto winter.
But just how much has the NFT market been affected? Well, contrary to the crypto market which peaked in November 2021, BAYC NFT floor prices peaked in May 2022.
Assessing the impact of the crypto winter on BAYC demand
A potential reason why BAYC NFTs managed to hold on to value longer than cryptocurrencies could be their uniqueness and well-established strategy.
According to Coingecko, the floor price for BAYC NFTs peaked at 146 ETH in April 2022. However, the floor price has since crashed to 26.22 ETH as of 5 October.
Source: Coingecko
A similar observation applies to the BAYC trading volumes which peaked at 7,018 ETH and have since crashed to 192.24 ETH. This highlights the extent to which the demand and trading activity related to the BAYC has tanked in such a relatively short period.