Bend DAO Liquidity Drained with Fear of BAYC Collapse
Bend DAO’s liquidity has nearly been drained because of the increasing fear that the floor price of BAYC may collapse. Bend DAO is considered to be the most famous venue in terms of taking loans in return for the collateral of the NFTs. It has been witnessing remarkable success up till now. Those who possess Apes, CloneX, Azukis, and Doodles among their NFTs can deposit them as collateral to get a loan.
Bend DAO Runs out of ETH
As an alternative to this, people are permitted to support the respective project via lending the ETH tokens in their possession to their borrowers. A problem arose that on the platform it was impossible to liquidate the non-fungible tokens that should have been liquidated. The issue with fungible tokens indicates that one requires making a bid on a particular non-fungible token, and if the others are aware that they can force the holder to take a less amount, they will delay till the price is lowered.
Since the market’s peak in May, the floor price of the Bored Ape Yacht Club has declined from the huge figure of more than $400k to just $100, at the moment, with a 75% fall. During its earliest year of business, the community of BAYC had approximately a great record. Considerably small downwards fluctuations, as well as comparatively steady progression in upside price direction, were witnessed at least in the case of ETH.
This assisted in pushing the BAYC to be included among the biggest as well as the most broadly-recognizable collections of non-fungible tokens. Nonetheless, since touching the top point of the bull market of NFTs, it seems that the initial bear market is near to take place. A 75% decrease is sufficient to shake any asset’s holder, nevertheless, the community of Ape tokens is resilient, and will probably not disperse shortly.
A Pudgy Penguin Traded for 400 ETH
The NFT community has been in deep surprise during the recent 24 hours because someone traded a Pudgy Penguin for a huge amount of 400 ETH. The respective news appears following the celebration of the PP community over an upsurge of 400% in the token’s price after the lows that occurred within the market along with the celebration of the dominance of ape-themed tokens across the space.
