There is always an interest in new NFT collections, although the Otherside collection was met with tremendous anticipation. Likewise, the new Metaverse project by yuga Labs is of keen interest to ApeCoin holders. After a successful public sale, it will be interesting to see what the future holds.
The Otherdeed For Otherside Land Auction
Rumors had been swelling for days regarding Otherside and Yuga Labs. Ever since Yuga Labs released ApeCoin, there had been a utility demand. Rather than focusing on payments, like so many other projects, the APE currency would provide exclusive access to NFT collections, events, etc. One such exclusive collection is Otherdeed for Otherside, the Metaverse project built by Yuga Labs.
The project has gone live in the past 24 hours with its Land NFT sale. Users could acquire 55,000 land plots for this virtual world and pay for their purchase with $APE. A welcome development and one that helped contribute to the accumulation of ApeCoin these past few days. The Otherdeed for Otherside Land NFT sale raised 16,7 million APE, or roughly $317 million. That means roughly 7.85% of the circulating $APE was used during this event.
Unfortunately, the overall demand for $APE has now seemingly vanished as the sale has concluded. All 55,001 plots were minted and sold pretty quickly, The collection trades on OpenSea, yet it seems most traders will pay with Ether, as the NFTs reside on the Ethereum blockchain. As such, there is no need for anyone to own $APE right now – at least for buying Land NFTs – which explains why the price is crashing.
$APE Goes Down Hard
The dwindling demand for $APE would ruin the price momentum. People massively acquired tokens to partake in the Land NFT sale and now have no immediate purpose for the asset. The result is somewhat expected: a near 26% price drop, bringing the ApeCoin value back down to just over $17. That doesn’t mean the asset won’t return to over $25 in the coming weeks or months, but there is no pressing reason to pay top dollar for this coin right now.
That said, APE still has nearly $5 billion in trading volume. While there is substantial bearish pressure on the market, it is not impossible to overcome. Some people speculate Yuga Labs has already begun dumping the $APE they gathered, although official sources have not confirmed that. Even so, there will be some unrest for ApeCoin over the next few days.
Otherdeed Land Floor Fluctuates
The big question is what the future will hold for the Otherdeed NFTs. With tens of thousands of land plots minted, there is substantial liquidity. One also has to remember the maximum land supply is 100,000 and will increase to 200,000 in the future. Moreover, the 50,001 plots minted during the NFT sale are not the only liquidity. The contract has 82,773 land plots minted, although those extra plots will not necessarily hit the market.
It is equally crucial to look at the Otherdeed NFT distribution. Fifteen percent of the initial 100,000 maximum limit will go to project contributors. Additionally, 30% goes to BAYC and MAYC claimers, whereas the team sold the rest during the public sale. It is a relatively fair distribution, although that 45% for contributors and claimers can have a significant price floor impact over the coming months. Much will hinge on how Yuga Labs develops Otherside.
The Otherdeed floor price has already seen wild price action. Despite initially spiking to over 12 ETH, prices quickly fell below 6 ETH. The floor price has been on an uptrend ever since, with an average of 7.958 ETH so far. Moreover, NFT owners hold just over 3 Land plots on average, which is rather interesting. It will be interesting to see what happens when people begin to unload their assets.
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