what’s next for the market?

How are investors and collectors reacting to the changing state of the NFT market amid Yuga Labs’ restructuring?

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

The move comes amid 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 focus.

CEO Greg Solano recently shared a heartfelt message about X, acknowledging the company’s challenges and charting a path forward.

GM, today is a really tough day. I am determined to transform the Yuga and return us to our roots, and that means making difficult decisions. By far the hardest part is saying goodbye to some talented team members. My message to the team this morning was this. pic.twitter.com/gBkoNf2iK3

— Garga.eth (Greg Solano) 🍌 (@CryptoGarga) April 26, 2024

Solano talked about the importance of regaining focus and agility by positioning Yuga Labs as a leaner, more efficient organization with a deep understanding of crypto.

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

Additionally, Yuga Labs is putting renewed emphasis on the Otherside metadata array project. Launched during the peak of the 2022 NFT boom, Otherside aims to create a digital universe where users can interact, create and trade NFTs.

Despite the challenges in the market, Yuga Labs has talked about its plans to move forward with this ambitious initiative.

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

Current performance of BAYC NFTs

Following the announcement of Yuga Labs’ restructuring efforts, there was a notable increase in the performance of its flagship BAYC NFT collection.

As of April 30, BAYC NFTs trading volume increased 80% in the last 24 hours; Approximately 1,300 ETH was traded in the last 24 hours, which equates to approximately $4.2 million.

The estimated market cap of BAYC NFTs is approximately 147,139 ETH, which is approximately $466 million. This represents approximately 11% of the total NFT market cap of $4.23 billion.

In addition to transaction volume and market value, the number of sales of BAYC NFTs also increased by over 52%, reaching 96.

NFT market performance

The NFT market is experiencing a surge in activity and growth, with various blockchains and projects seeing significant increases in sales and prices.

Ethereum: Ethereum (ETH) had the highest sales volume in the last 24 hours as of April 30, with approximately $9 million. However, Ethereum’s monthly volume has dropped over 57% since March to around $250 million.

Source: CryptoSlam

Bitcoin: Bitcoin (BTC) recorded NFT sales of approximately $7.5 million in 24 hours, making it the second largest sale in the industry. Bitcoin generated $542 million in total NFT sales in March, its best month since last December, up 70% from the previous month.

Solana: Solana (SOL) ranked third, up 52% ​​in daily sales, with sales of $4.7 million in the previous 24 hours as of April 30. Solana had its most successful month for NFTs in March of this year, with sales of over $250 million, up nearly 16% from February. The average selling price of Solana-based NFTs in March exceeded $100 for the first time since April 2023.

Source: CryptoSlam

Overall, NFT prices are rising across all blockchains, with the average selling price reaching an almost two-year high on some chains.

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

What to expect next?

TechNavio’s analysis predicts that the NFT market will expand at a compound annual growth rate (CAGR) of 30.28% between 2024 and 2028, reaching a market size of at least $68 billion.

TechNavio predicts that NFT market value will grow by at least 23.27% on an annual basis in 2024.

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

Interestingly, women in Thailand are showing more interest in NFTs; 30% collect NFTs compared to 23% of men.

In contrast, 70% of Americans remain unaware of what NFTs are, highlighting the untapped potential in the US market.

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

But as governments around the world take a closer look at the crypto space, more rules and regulations are expected to impact NFT markets as well. Moreover, the general volatility in this area can make or break the game.