A highly coveted CryptoPunk non-fungible token (NFT) has been sold at an astonishing 80% discount, highlighting the current challenges within the NFT market.
On August 19, 2024, CryptoPunk #5822, previously purchased by Deepak Thapliyal for 8,000 ETH (about $23.2 million in 2022) was resold for just 1,500 ETH netting the owner approximately $3.9 million. Following the sale, the prominent figure in the NFT space took to X (formerly Twitter) to bid a fond farewell to the NFT, wishing its new owner well in their possession of the prized token.
Notably, the sale price remained undisclosed initially, fueling speculation among community members about the transaction amount. The uncertainty was later resolved when the buyer, known as VOMBATUS on X, confirmed the purchase, suggesting the low sale price was akin to getting a “free” token.
At press time, CryptoPunk #5822 had been re-listed for sale at 5,000 ETH (about $13.36 million). If it were valued at this price, Thapliyal’s potential loss could amount to approximately 45% of his original investment.
That said, the sale of CryptoPunk #5822, lauded as the fourth-largest NFT transaction of 2022, highlights the increasing instability and sharp decline in market activity within the NFT sector. Launched in mid-2017 as a fixed set of 10,000 items, CryptoPunks quickly became one of the most coveted NFT collections worldwide, amassing over $2.87 billion in total sales.
According to CryptoSlam, monthly NFT sales volumes in July dropped to their lowest level since November 2023, with Q2 sales figures plummeting by 44% compared to the beginning of the year. This decline marks a dramatic shift from the peak of NFT mania in January 2022, when monthly sales reached $6.04 billion. Since then, sales have fallen sharply to just $229 million.
The NFT downturn has been further illustrated by recent auction results. Last week, Sotheby’s auction which featured NFTs from both the CryptoPunks collection and digital artist Beeple, saw minimal interest. The auction, which closes later this week, currently has only one bid of $45,000, with Sotheby’s estimating its value between $70,000 and $100,000.
This decline in NFT value is not isolated. In March 2024, Kevin Hart’s BAYC #9258 sold at an 81% discount from its purchase price. Similarly, Justin Bieber’s NFT was sold for and almost 95% loss in July 2023.
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