Learn how the NFT empire of the boring ape (bayc) was formed

Published on 6 Days ago   64 views   0 Comments  

Source: Nansen, compiled by the way of defi

In this article, we will go deep into the world of boring apes (bayc), understand all their contents, and check the data on the chain to see if the hype is true.


introduce


NFT has occupied the world. Extremely expensive pixelated cartoon characters, cartoon theme art and cartoon animals are increasingly becoming the preferred avatars for encryption investors. However, in this zoo, the boring ape (bayc) is the most iconic.

Boredom ape - bored ape Yacht Club (bayc) - has become the most expensive and influential NFT collection. In addition to the total market value of more than 1.69 million eth, the series has also been successfully recognized by NBA stars Stephen curry, Steve aoiki and Jimmy Fallon, to name just a few.

How did the cartoon ape JPEG collection become a multi billion dollar brand in just over a year? Is bayc really powerful, or is it just the latest buzzword thrown out by the "community" to gain attraction?

In our first issue of more than JPEG, we delve into the world of bayc to understand their full content and check the data on the chain to see whether the hype is true.


Background story


How did bayc start

"Ape" and "apeing" have strong cultural significance in cryptocurrency. These words are often used to describe blind investment in something, usually stocks, cryptocurrencies and NFT. As retail investors' interest in investment increased during the COVID-19 pandemic, the use of the term also increased. Spend some time on subsections such as wallstreetbets or crypto twitter, and you'll see the term appear in all other posts.

According to an interview with coindesk, bayc founders Gordan goner and gargamel imagined a bar that only exclusive club members can enter. Apes is the preferred member of this club, and the concept of boring ape Yacht Club (bayc) was born.

April 23, 2021 is the day when bayc is launched. At that time, the price was 0.08 eth or about $200. According to today's standards, casting was almost free, but the collection series including 10000 NFTs took about a week to finally sell out. No hype and no attraction. It wasn't until a week later that pranksy, one of the most profitable and productive NFT collectors (currently outside the top 10 of Nansen NFT's profitability list), began to speak for the collection.

Gradually grow

Bayc series is the basis of the ecosystem established by Yuga labs in the past year, but it does not represent the whole ecosystem. After feeling that only byac series seemed too single, Yuga team decided to create a companion collection: about two months after the launch of bayc, Yuga team distributed 10000 bored ape Kennel Club NFTs to bayc holders for free.

The third series of mutant ape mutant ape Yacht Club (mayc) was launched in August 2021. This time, the total size of the series is 20000, twice that of the first two series. 10000 variant sera were provided to 10000 bayc holders, which enabled them to produce mutant versions of bayc. The other 10000 were sold to the public at the casting price of 3 eth. This time, the series sold out in an hour, and the team raised a total of $96 million.

Recently, the team launched its fourth series: otherside, a virtual land series for the upcoming bayc metauniverse. The total size of the series is 200000 NFTs, of which 100000 will be launched on April 30, 2022, and the rest will be distributed to NFT holders who contribute to the development of otherside. Similar to previous collections, existing holders of bayc and mayc can receive their otherside NFT without additional charge. The public can buy the NFT at the price of 305 apepoints.

This release has aroused a lot of interest in the field of cryptocurrency. 112 smart currency addresses interact with it in the sales contract. The gas price of Ethereum network flew from 40-70 Gwei the day before to 8100 Gwei during coinage. The surge caused an uproar on twitter, and many users were disappointed with the mismanagement of the release and the quality of the deployed smart contract. However, vitalik himself has responded and concluded that the optimization contract has little impact on the gas fee.

Land sales have attracted worldwide attention

In September 2021, Sotheby's, a world-famous auction house, sold a set of 101 boring apes (bayc) and 101 kennels (bakc) for a total price of US $26.2 million, more than 30% higher than the upper limit of valuation. Another auction was held by YFC, a famous auction house. A total of four boring apes were auctioned and sold for about $2.8 million.

Source:Sotheby's

Both auction houses are leaders in art and luxury auctions. Looking for works by Vincent Van Gogh, Raphael and Leonardo da Vinci? Sotheby's and Christie's may be places you can buy. In the eyes of traditional art circles, bayc appears in auction activities of auction houses, which adds legitimacy to such collections and NFT.

Sit firmly first

Since the rise of bayc, the competition between bayc and cryptopunks has been brewing. For many years, punks has been known as an excellent "blue chip" NFT asset because of its long history and dedicated community. Although the floor price of bayc exceeded the reserve price of cryptopunks for many times and finally exceeded 100 eth, the og status of cryptopunks makes the series maintain its crown in the field of NFT.

However, when Yuga labs acquired the intellectual property rights of cryptopunks and meebits from larva labs, the debate about which was more influential finally subsided. Cryptopunks still maintains its og status and historical relevance, but as of today, the king of NFT is undoubtedly bayc.


In depth analysis on the chain


In order to understand the success of bayc and its world, let's go deep into the chain data provided by Nansen to assess whether the series is really the success it looks like.

summary

This is a high-level overview of the series:

  • Secondary sales of more than 528000 eth (data filtered by cleaning transactions) (as of April 27)
  • Maximum daily trading volume 15415 eth
  • The average daily trading volume in 30 days is about 1800 eth
  • ~6200 holders
  • 257 boring apes have been held since casting

Yuga labs received 2.5% of the secondary sales royalties and has received royalties for about 14100 eth (about US $33.8 million). โ€

Source:Nansen's NFT God modelโ€Œ

Seniority distribution

As mentioned earlier, the holder exceeds 6.2 K. The series took about a week to reach 200 unique addresses, but it showed a parabolic trend from May to July, reaching more than 4400 unique addresses. About 80% of NFTs have been held for at least 60 days and about 63% have been held for at least 90 days. This indicates that on average 63% of NFTs are purchased at 93 eth or less. The reserve price reached a peak of 150 eth at the end of April, and then fell to the reserve price of about 100 eth. Ordinary buyers joined the club relatively early, but in the period of downward trend in most markets, they are still in a state of balance of payments or low profit.

Source:Nansen's NFT God modelโ€Œ

โ€

How sticky is the floor price?

In addition to checking the percentage of wallets with considerable profits, let's take a look at the percentage of wallets with only one bayc NFT and the balance of diamond hands to assess the sustainability of the current floor price.

There is only one bayc in the wallet, which accounts for a high proportion. In 81% of cases, it is higher than similar collections in the Nansen blue chip - 10 index, such as CLONEX (71%), azuki (76%) and cryptopunks (72%). This makes holders less likely to sell their boring apes because it is the only bayc they hold, thus creating a more flexible floor price. In addition, not many "whale" holders can lower prices by liquidating their collections.

In addition, there are 5200 bayc wallets holding these NFTs that have not been sold yet. Although this number is slightly lower than the historical peak of nearly 6000 NFTs, it is one of the few rising series.

Source:Nansen's NFT God modelโ€Œ

We can also check the listing activities to understand the psychology of the holder.

Only about 6.5% of bayc was on the shelves, 0.10% within 15% of the floor price, and most of them were on the shelves within the price range of 180 - 360 eth. This shows that most holders are not considering selling, while a small number of holders are looking for a price much higher than the current reserve price.

Source:Nansen's NFT God modelโ€Œ

Will smart money buy in at these prices?

The price is high, and it seems that only degens will buy collections at the highest price in history. It is hard to imagine that smart money will not make a profit at such a price, let alone ape in.

Looking at the trend of smart money holders, two things stand out.

  • The number of early adopters of smart NFT and smart NFT traders showed a gradual downward trend.
  • The number of smart NFT holders and smart NFT buyers is gradually increasing.

Source:Nansen's NFT God modelโ€Œ

Overall, early adopters have begun to gradually reduce their holdings. As prices rise, traders are making profits and exiting. Early adopters may see "financial freedom" level profits. One of the top wallets on the bayc profit ranking is the early adopter of smart NFT, which has made a total profit of 1404 eth with a profit margin of 41326%.

Source:Nansen's NFT God modelโ€Œ

Traders usually expand as prices rise, and as bayc continues to push up new highs, it is difficult for them to maintain their position. However, smart money addresses that tend to have a long-term vision have been increasing. This shows that they are optimistic about the long-term prospects of the series.

According to the personal transaction dashboard, in the past 30 days, we have seen that smart money is indeed still making purchases. Some of them even buy well above the 12 hour simple moving average price.


Bayc's future


Bayc is expected to become a very influential brand with similar cultural influence to supreme, but its social signal can be comparable to high-end fashion brands such as Gucci and Louis Vuitton (LV). With the growth and development of their ecosystem, their influence and significance are also increasing. The launch of apecoin, apecoin Dao and virtual land collections has further consolidated their position in the Web3 world. More mainstream partnerships similar to the adidas partnership and the bayc film trilogy under preparation will help spread bayc's share of ideas among the public.

As the holder is given full commercial rights and control over its NFT, we can see the future of individual bayc becoming a celebrity by virtue of its own rights. Brands and films may use eye-catching bayc images or bayc with specific characteristics may appear in their advertisements or films.

Between these mass media touchstones and the upcoming "otherside" virtual world, the bored ape Yacht Club (bayc) is now creating the significance of NFT collections with cultural significance.


conclusion


Bayc has evolved from a simple JPEG NFT to a broader ecosystem that is becoming as culturally influential as brands such as supreme. Their rapid rise is actually unheard of and unmatched by mainstream fashion brands and encryption based projects.

Although what they have achieved so far is impressive, at least it may be the beginning of the larger universe they are about to create. The activities of the holders show that both degens and smart money are similarly optimistic about the future of bayc. The team dreams of a world ruled by bayc. This dream may not be far fetched. Bayc may become the ruler of the yuan universe.


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