The Bored Ape or ‘Monkey NFT’ is among the most prestigious digital art collection in the world. Preferably the only collection to have pushed the rise of a unique subculture, these art pieces stand out as exclusive, extravagant, edgy, and costly pieces to own.
The ‘Bored Ape’ is a humble collection of 10,000 NFTs, each depicting an ape with a quirky face design, each impersonating an unapologetic style. Besides, their unique design and star-studded ownership make the BAYC NFTs (Bored Ape Yacht Community) one of the most sought-after collections with an entry price of 52 ether, or $58,590 (according to the current market price).
While the hype around these monkey NFTs is real and very successful in attracting established owners, it has also been under the critic’s spotlight. This is because it has led many investors and NFT enthusiasts to one similar question, what makes the monkey NFT price so high?
Let’s find out as we analyze the idea behind these NFTs and why they’re so famous and expensive.
What Makes The Bored Ape Yacht Club’s NFTs So Expensive?
Their popularity is the prime reason behind the high value of these NFTs. The collection has an impressive list of owners like Eminem, Shaquille O’Neal, and Justin Bieber, among others, making BYAC NFTs a new sensation among celebrities.
Owning one of these bored apes brings you under the spotlight, and everybody likes that special recognition. This psychological factor pushes the collection as a favorable investment among the upper-class circle.
However, the recognition and spotlight aren’t the actual value of the ownership of these limited digital art pieces. The Bored Ape Yacht Club’s limited membership access makes it a unique investment.
Once you’ve acquired one of their NFTs, users automatically qualify for the BAYC. This digital club introduces its members to numerous benefits, which have been discussed in the following section.
Unique Factors That Push The Price For The BYAC NFTs
These NFTs Are Rare
The demand for any good or service is directly proportional to its increasing price. High supply & low demand = low prices, while high demand & low supply = high prices.
BAYC NFTs operate around a similar approach where the collection is limited to only 10,000 digital art pieces. Their limited supply resembles scarcity, making them rare and simultaneously increasing the price in the process.
Interestingly, Bored Apes aren’t just collectibles with a similar product design. Instead, every Ape listed on the platform is different and adapts a unique characteristic to them.
For instance, the entire set of 10,000 NFTs is divided into a combination of 170 unique traits like cyborg ape, thug ape, or golden fur, adding a unique character to every NFT.
Bored Apes Rival CryptoPunks
While Bored Ape NFTs might be high in popularity, the collection has a competitor too. The BAYC NFTs are rivals with CryptoPunks in terms of their price and popularity. In addition, both NFTs are available as 10,000 collectibles and have fine details that further enhance their rivalry.
For example, CryptoPunks were the early adopters of the NFT market, making their debut in 2017. On the contrary, BAYC was launched in 2021. That said, the two digital art collections also rival for copyright vs. no copyright.
For instance, being an owner of the CryptoPunks NFT art collection, you have no right to Intellectual Property to the NFT. But Bored Apes, on the other hand, provide IP rights to the owners.
Fast forward to 2022, and the topic of debate might be a thing of the past. Yuga Labs, the brain behind BAYC NFTs, recently announced their acquisition of the CryptoPunks NFT collection.
The Bored Ape Universe Is Ever Expanding
Innovation in its digital universe is another aspect that makes Bored Apes unique. Since its launch, the creators behind the art pieces have been innovative in introducing new projects like Mutant Apes and Canine NFTs. In addition, BAYC launched its crypto token with the ticker ‘APE’ in March 2022.
So far, the token has been a potential performer in the market. Despite being a new token, it was able to push its value to an all-time high of $ 24 before finally giving in to the crypto winter.
Currently, the Ape Coin (APE) is trading at $3.90 with a market cap of $1.40 billion, making it a great entry point for traders who want to invest and HODL long-term. However, that’s not all; the APE token has also been a part of the Benji Bananas P2E game.
Exclusive Community Benefits
The exclusive community benefits are unique aspects of investing in the Bored Ape digital art. Gaining access to the membership brings you opportunities like:
- Access to community events like the ‘warehouse party’ held during NFT week in New York.
- Access to a Discord server exclusive to the members.
- Access to a unique graffiti board called ‘The Bathroom.’
These events, rooms, and servers could bring you close to celebrities like Justin Bieber, Eminem, and Mark Cuban, among others who are proud Bored Ape owners.
Interestingly, the exclusive benefits don’t just end here. Every holder of the Bored Ape NFTs can access several other opportunities like minting a pet for their apes, airdrops, and creating mutant apes, among other features.
Such opportunities have given way to official subsidiary projects like the Bored Ape Kennel Club, which recently raised a million dollars by selling canine NFTs. The sole purpose of the event was to raise funds for animal shelters.
Such innovations and features make the Bored Ape NFTs one of the most functional art pieces. But considering such high prices, are they worth the ownership?
Are Bored Apes A Reliable Investment?
A Look Into Their Price History
Bored Apes made their debut in April 2021. At the time of their launch, the art collection was available at an initial mint price of 0.08 ETH, or $250 (avg).
However, the price for the least expensive NFT in a collection, known as ‘Apes,’ has varied dramatically in a concise span. Nearly a year after the collection’s debut, the token reached its all-time high of billions of dollars by April 2022.
For rarer collections, the NFT monkey price moved to millions of rupees. For instance, the BAYC No. 5383 sold on 18th August went for 777 ETH, roughly 1.2 million. However, that’s not all. The most expensive NFT monkey to ever be sold was BAYC No. 8817, which was sold for INR 271 million in October 2021.
However, fast forward to the second half of 2022, and the floor price for different BAYC collections has decreased. For example, the rare collection is available for 72 ETH, decreasing over 70% in only five months.
The Current Market Conditions Come Into Play
Adding to the aforementioned factors is the declining market trend for NFTs. Their wide availability and low sales have made NFTs a more affordable option that won’t pump in value anytime soon.
One primary reason is that NFTs rely on sellers to increase their value. So overall, while the market may be down, now could be a good time to buy and hold some rare NFT collections.