The Rise of NFTs: A Brief Overview
Non-fungible tokens (NFTs) have taken the digital world by storm. With prices skyrocketing and collectors lining up like it’s Black Friday, it’s no wonder everyone’s curious about which NFT collection gives the best bang for their Ethereum buck.
Average Returns: Not Just Numbers
For instance, let’s chat about CryptoKitties. These adorable digital feline companions launched in December 2017 with an average price of $3.24 each. Fast forward to today, and they’re clawing their way up to an average trading price of $256.99. That’s a pretty purr-fect return of over 7,800%!
The Heavyweights of NFTs
Now, how do CryptoKitties stack up against other heavyweights like CryptoPunks and the Bored Ape Yacht Club? According to research, while CryptoKitties are cute, CryptoPunks might just steal the show. The CryptoPunk #7523, dubbed the COVID Alien, sold for a jaw-dropping $11.7 million in June 2021! This kind of sale can skew averages, making them look fancier than they really are.
Median vs. Average: The Real Story
Kimberly Parker, a Canadian artist, suggests we’d be better off looking at median prices instead of chaotic averages. Knowing the average just means one mega sale can throw the whole data set off like a cat knocking over a tower of blocks. To find the median, you simply line up the prices and find the one in the middle. This way, you get a much clearer picture of what’s really going on in the NFT market.
Floor Price: The Bottom Line
And then there’s the floor price, which indicates the lowest currently listed price of an NFT in a collection. For example, if you were looking to buy a Bored Ape, the floor price is currently around 38 ETH, or $125,000. That just shows how high the stakes are in this digital cat-and-mouse game! And when Visa dropped $150,000 for a CryptoPunk back in August 2021, the floor price skyrocketed by 280% to reach $425,000. Talk about inflation!
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