CryptoPunk Breaks NFT Record With $24 Million Sale

• CryptoPunk, one of the earliest NFTs recently sold its CryptoPunk #5822 for $24M.
• The recent dip in CryptoPunk coincides with the downturn in the NFT market.

CryptoPunks is a groundbreaking project of 10,000 collectible characters or crypto avatars on the Ethereum blockchain. It has recently experienced dramatic fluctuations in value due to a dip in “blue chip” NFTs.

CryptoPunks launched in July 2017, is celebrated as one of the earliest examples of non-fungible tokens (NFT), inspiring the ERC-721 standard today. Their historical significance has earned them spots in prestigious art museums like ICA Miami, Centre Pompidou, and LACMA.

The collection’s most expensive NFT, CryptoPunk #5822, recently sold for nearly $24 million, breaking its previous record. The sale was a significant moment in the NFT world, as it was one of the nine ultra-rare Alien Punks. Before this sale, the record was held by another Alien Punk, which sold for $11.75 million at Sotheby’s.

CryptoPunk Values Dip Amid NFT Market Downturn

Despite this high-profile transaction, the value of their NFT’s has dropped substantially from its peak. Last year, during the height of the NFT craze, even the least expensive CryptoPunks sold for around $200,000.

In February 2023, Deepak Thapliyal, CEO of Chain, bought an Alien-style CryptoPunk for nearly $23 million. This price was significantly higher than any other Punk sale, coming close to breaking the record for the most expensive NFT ever.

However, recent data shows that the price floor for the NFT has fallen to about $59,000, with some estimates even dipping below $44,000.This decline in value has coincided with a collapse in the NFT market. It affected high-profile collections like CryptoPunks and Bored Ape Yacht Club. Recent Sotheby’s auctions for CryptoPunks have struggled, with bids not exceeding $60K.

Amidst this volatile environment, CryptoPunks maintain a cult status due to their role and the “fair launch” approach by Larva Labs, which distributed them for free in 2017. Despite the recent drop in values, the NFT collection remains a key feature in NFT history and a symbol of the asset class’s potential.

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