Some skeptics lately assert that the NFT market and NFT marketplaces have been rolling downhill – not least because of the overall lukewarm state of global risky investments. True, the DXY dollar index has reached unprecedented levels – not seen since March 2020 in the depth of the Covid pandemic – which acts as a heavy counterweight against all instruments nominated in USD. This is exactly why it takes to have real guts and courage to beat the safe havens in times like this! NFTs are a big business, with about $25 billion being spent on them in 2021.

A long-anticipated new NFT collection was launched last week by the Bored Ape Yacht Club team. The Ethereum blockchain was overwhelmed by strong demand. Are crypto markets searching for new high-growth domains instead of just promising projects within the old system?

A new NFT collection comprises 100,000 “land deeds” for the virtual world. Interest in the drop was immense – too much for the Ethereum blockchain to handle. Although the venture didn’t come along as smoothly as expected, the deal was apparently a success. However, some users ended up paying thousands of dollars in fees for failed transactions, and Ethereum blockchain stalled for hours due to its inability to distribute the load.

Pic. 1. Graphic Parallels of Head-to-Head ICO Launches

Otherside is a metaverse gaming platform in which users’ NFTs could be used as playable characters. Otherside ‘deeds’ could only be bought with ApeCoin, a token YugaLabs recently released that runs on the Ethereum blockchain. The deed were sold at a flat price of 305 ApeCoin, equivalent to around $5,800. Yuga Labs sees it as a virtual world made up of 200,000 mosaic plots of land, which will be purchased, owned and traded as NFTs. Land being sold as NFTs has been a confusing, dispute provoking concept, but traders are hoping land in certain selected metaverses would provide a real no-gimmick value; let’s imagine, for instance, owning a building in the center of a game like Fortnite and being able to do what you like with it.

Pic. 2. NFT – Bored Ape Yacht Club Dashboard:

With The Bored Ape Yacht Club easily became the most successful NFT collection to date – it costs about $370,000 to buy into the entire Club now – the Otherside land drop was earmarked by many to be the biggest in the history of NFTs. So the question is what is the story behind tremendous popularity of Bored Ape Yacht projects?

Bored Ape Yacht Club is a limited NFT collection where the token itself doubles as customers’ memberships to a swamp club for apes. All characters became easily identifiable and recognizable thanks to genie of the artist-designer of this project. Bored Ape Yacht Club NFT owners have been getting amazing benefits from the project since it launched in 2021. It started at just about 0.08 ETH or a little under $200 at that time.

However, during the NFT launch, over $175 million was spent on gas alone. Ethereum’s blockchain has a deflationary protocol that burns most tokens spent on gas – so much of that $175 million is now simply gone.

Yuga Labs wrote in a Twitter statement that it would refund those failed transaction fees and that it may develop a whole new blockchain to run its metaverse activities. Some investors frustratingly argued that the fault wasn’t with Ethereum per sey, but with the way Yuga Labs set up the sale and the inefficiency of its smart contract.

Bored Ape NFTs Trading Volume: $3.75 Billion

With the current value of ApeCoin, considering that all NFTs will be sold out, total sales will be around 16.775 million APE, or roughly $378 million. All in all, the Bored Ape NFT collectibles have amassed a trading volume of $3.75 billion.

Interestingly, Bored Ape Kennel Club and Mutant Ape Yacht Club will also be receiving both Otherdeed NFT and ApeCoin bounties at zero costs!

Bored Ape NFTs have climbed which also increased their demand in the NFT market scene. More so, owners of the Bored Ape NFTs can also use their IP rights for the Ape Image for their individual brands or projects.