- Rare Cryptopunk owner plans to sell the pixelated non-fungible token collection for $91 million.
- NFTs beat traditional crypto assets in terms of profitability for traders; market sentiment drop and uncertainty do not influence the price.
- Over $11 million worth of a new NFT collection of Pudgy Penguins sold on secondary markets in the past 24 hours.
NFTs are attracting users due to their uniqueness and higher profit-booking opportunities on peer-to-peer marketplaces.
Pudgy Penguins NFT collection fetches $11 million on secondary markets
Crypto traders are flipping NFT collectibles and digital art for over tenfold profits on peer-to-peer marketplaces. The first-ever NFT was created in May 2014, live at the Seven on Seven conference at the New Museum in New York City.
Following this experiment, Etheria, a fully-fledged NFT project, was launched at Ethereum's first developer conference DEVCON 1. Etheria offered 457 purchasable and tradable hexagonal tiles (each hardcoded to 1 ETH) that went unsold until a renewed interest in NFTs attracted users.
On March 13, 2021, all of Etheria's tiles of the current and prior versions sold for $1.4 million. Since then, NFT projects have lured crypto enthusiasts and art collectors due to their exclusive offerings like membership to clubs or events.
In the first week of August 2021, the monthly USD value transferred for the top seven NFT marketplaces has hit $356 million. OpenSea has captured 97% of the NFT transfer volume.
The daily trade volume on OpenSea averages between $40 million to $60 million based on DuneAnalytics data.
Daily trade volume on OpenSea
The most popular NFT on OpenSea is Cryptopunks, a pixelated NFT collection that clocked over 1,000 sales for a total of $166 million in the first week of August. The owner of the rare Cryptopunk wants to sell it for around 35,000 ETH or $91.64 million. The rare NFT sold for $2 million in its last transfer on OpenSea.
NFT prices are not affected by market sentiment or other factors that influence crypto prices. That explains why the owner is pricing his NFT over 45 times above the last traded price.
Another NFT collection that is currently popular among crypto enthusiasts is Pudgy Penguins. The collection has a total of 8,888 penguins, and the limited supply is driving the demand higher. Over $11 million worth of digital Penguins has been sold on secondary markets within 24 hours of launch, on August 11.
The NFT collector and trader behind the Twitter handle @notEezzy shares that it is easy to flip NFTs for profits.
NFT flipping literally soo easy wtf
— notEezzy (@notEezzy) August 9, 2021
4 days, 18x profit, $300 to $5,500 pic.twitter.com/PdRWGyK7n1
@notEezzy has previously flipped NFTs to turn $600 into $56,000 in a few trades on OpenSea, and he shared the transfer details in a Twitter thread.
While NFTs are currently in demand, some experts are concerned about the speculation around prices and the uncertainty in profit booking. Ari Paul, founder of Block Tower, a blockchain investment firm, tweeted:
If you’re buying NFTs because you want to own provably scarce art, that’s awesome. If you’re buying NFTs that pumped 100x in the last 6 months as speculation..careful. If you’re not part of the insider pump group, you’re probably gonna lose money. Almost guaranteed in aggregate.
— Ari Paul ⛓️ (@AriDavidPaul) August 12, 2021
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.