As Bitcoin NFT welcomes a hot rising trend, the darkest moment of Yuga Labs has caused many NFT holders to break through. Apart from the helplessness of the leading NFT's continuous decline and the tragic liquidation, it also demonstrates the fact that it is difficult for the entire Ethereum NFT to change the long-term decline in the short term.

Subsidiary NFT is about to break, facing large-scale auction liquidation

Due to the attention and funds attracted by emerging NFTs such as Bitcoin and Solana, the floor price of blue-chip NFTs in the Ethereum ecosystem has recently experienced a general decline. According to Blur data, in the past 7 days, NFTs such as MAYC, Pudgy Penguins, Azuki, DeGods, CloneX, and Moonbirds have experienced varying degrees of decline, with the highest being nearly 30%. Among them, as the leader of the Ethereum NFT market, BAYC and MAYC are in an embarrassing situation of continuous decline.

NFT platform Blur data shows that the floor price of BAYC has fallen to 17.6 ETH, hitting a new two-year low, with a decline of over 24.03% in the past 7 days. At the same time, the floor price of MAYC has fallen to 2.93 ETH, a decrease of 28.33% in the past 7 days. MAYC has already fallen below the Dutch auction starting price and is only 5% away from the final auction price of 2.79 ETH.

Under the general decline, there are currently more than 75 BAYC and hundreds of MAYC in a state of Blend auction liquidation. At the same time, the latest data from Flipside Crypto shows that as of March 5th, the blended loan balance of MAYC and BAYC has also reached its highest level in history, with over 50% of MAYC loans in an "underwater" state (i.e., the highest bid value is less than the principal owed).

The continuous decline of Yuga Labs' NFT series has also sparked community discussions. Some people are glad to have sold at a loss in time, while others blame Yuga Labs for inaction, and even say that if the price does not improve, they will sell their NFT assets and "leave the circle". Some people even mock, "Yuga Labs is giving everyone a chance to rejoin this great club."

Co-founder takes over the helm, but the change in market strategy still causes dissatisfaction in the community

Yuga Labs was once in the limelight, not only winning the largest single financing in the NFT field, but also its native and acquired NFTs were once the backbone of the entire NFT market. However, after shifting towards the metaverse development path, Yuga Labs gradually began to decline. And recently, Yuga Labs has also begun to take action.

In terms of the team, Yuga Labs co-founder Greg Solano announced last month in a post on X that he will take over as CEO, replacing former Activision Blizzard executive Daniel Alegre, and announced that a new company called BAYC LLC will be established as a subsidiary of Yuga Labs to handle all matters related to BAYC, as well as to free the BAYC team as much as possible. In addition, Greg Solano also revealed that in addition to focusing on developing more attractive games, Yuga Labs also plans to make Otherside a Web3 gateway. It is worth noting that the combined annual revenue of Otherside's competitors Fortnite and Roblox in the past few years is about $8 billion.

In terms of products, not long ago, Yuga Labs collaborated with the NFT market Magic Eden to create an Ethereum market, allowing users to access all popular minting platforms of top creators and to earn rewards through Magic Eden's reward program. In February of this year, Yuga Labs also announced a collaboration with the game studio Faraway to launch the game Dookey Dash Unclogginged in the first quarter of 2024, and NFT holders are eligible for token benefits. Unlike the original single-player version of "Dookey Dash," this is a free version of the Dookey Dash game, allowing all users to participate.

In terms of revenue, Yuga Labs has also established a creator alliance with Magic Eden and others to promote a sustainable royalty framework and collaborate on creating NFTs for random airdrops to users and rewarding the most royalty-paying users. At the same time, it has launched a 69-day royalty reduction event, including a 2.5% reduction in royalties for all forcibly collected collections and a 1% reduction in royalties for traditional collections. However, this temporary reduction in royalties does not seem to be widely accepted, and another NFT project, y00ts, has attracted market attention with its strategy of using forced royalties for NFT repurchases and providing X badges to creators.

In terms of market expansion, Yuga Labs has not slowed down its acquisition pace, announcing last month the acquisition of the parent company PROOF Assets of Moonbirds, including the team, intellectual property, and art portfolio. However, due to the latter's poor reputation, Yuga Labs' move has also sparked community controversy.

Overall, the unsatisfactory performance of BAYC and MAYC prices is also a microcosm of the overall Ethereum NFT market performance. Although Ethereum NFTs, after multiple market baptisms, still occupy an absolute advantage, they are facing the rapid rise of competitors such as Bitcoin and Solana. Whether Yuga Labs can continue to maintain its position remains to be seen, but the subsidiary NFTs such as BAYC and MAYC are facing the most challenging situation since their founding due to the price decline.

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