Alien CryptoPunk NFT sold for over 12 million

The world of non-fungible tokens (NFTs) has recently experienced a remarkable sell-off. A rare CryptoPunk NFT known as Punk #635 has sold for $12.5 million. This transaction, brokered by high-end NFT brokerage firm Fountain, marks the third time in two months that an “Alien Punk” from the iconic collection of 10,000 CryptoPunks has surpassed the $10 million mark.

Punk #635 is one of the nine rarest “Alien Punks” within the collection of 10,000 CryptoPunks, making him an especially sought-after digital asset. Despite the high retail price, this sale did not break the record for the most expensive Punk or NFT. That record remains held by Punk #5822, which sold for almost $24 million in 2022. The most expensive NFT ever sold remains Beeple’s digital artwork, which sold for $69.3 million in 2021.

This sale coincides with a decline in the value of many popular NFT collections such as Bored Ape Yacht Club (BAYC) and Azuki, while CryptoPunks continue to hold their value. This shows that the market may be moving towards rarer and more established collections such as CryptoPunks, which have maintained their attractiveness to collectors despite market fluctuations.

Market trends and collector preferences

The NFT market is experiencing a shift in collector preferences and overall market dynamics. Collections that were once popular, like BAYC, are struggling to maintain their value. The cheapest BAYC NFT, which cost around 128 ETH (about $408,000) in October 2021, has fallen to just 15.5 ETH (about $40,000), representing a 90% drop in value.

This trend is evident across several NFT collections, with total daily trading volumes down 99% since their peak in April 2022. Despite these market challenges, CryptoPunks remain a safe haven for investors looking for stable and valuable digital assets.

The sale of Punk #635 not only illustrates the enduring appeal of CryptoPunks, but also highlights the continued interest in rare and high-value NFTs. If this trend continues, we can expect a continued focus on quality and rarity in the NFT market, with investors focusing on collections that have proven their value over time.