I don’t think we’ve seen the bottom for NFTs yet

Blue chips are looking worse than people realize.

BAYC: 6.21 ETH
Pudgy Penguins: 2.37 ETH
MAYC: 0.81 ETH
Azuki: 0.51 ETH

These were some of the biggest NFT collections back in the day and now Blur’s shutdown could put even more pressure on them.

Remember that Blend allowed people to borrow ETH using their NFTs as collateral.

Imagine borrowing 4 ETH against a BAYC worth 6 ETH, now your lender wants repayment, but you don’t have 4 ETH available.

You either find another lender, sell assets to repay the debt, or risk losing your NFT.

And we now have a problem

If enough borrowers need liquidity at the same time, some will start selling their NFTs below floor

Even lenders who receive those NFTs might decide to sell them too.

There’s also 1,000 ETH in loans being recalled or withdrawn, although Blur hasn’t publicly verified the breakdown.

It’s simply the cheapest listing possible

If nobody is bidding anywhere near that price, a few desperate sellers can drag an entire collection lower.

And this will keep happening to most big collections in the coming weeks

People are underestimating how little liquidity is left in this market.

I’m not optimistic with this guys.