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Over the past year, the Bored Ape Yacht Club (BAYC) collection of non-playable tokens (NFT) has become one of NFT’s most popular projects. After several weeks of continuous value growth, the current minimum price per Bored Ape NFT is 130 ethers or $382K. Following the minimum price increase, the decentralized derivatives exchange Injective Pro opened a perpetual minimum price market for NFT.
Injective Pro Lists NFT Floor Price Perpetuals
On Thursday, Injective Pro, a decentralized derivatives exchange built on the Injective network, announced the launch of the NFT Floor Price Perpetuals. The team believes that offering floor price perpetual contracts lowers the barrier to entry for popular and expensive NFT collections such as BAYC. “[Floor indefinite contracts allow] retail users to trade based on the floor price of NFT collections, without having to hold the NFT itself,” the trading platform explained.
The
Bored Ape Yacht Club (BAYC) is one of the most expensive floor prices to date, as one BAYC NFT is worth 130 ethers or $382K. This value gives the entire Bore Ape collection a market capitalization of about $3.81 billion. Of the 6,401 owners, the BAYC NFT collection received $7.99 million in 24-hour trading volume. The Injective Pro platform will allow clients to make long or short trades on NFT floors starting at $1.
“The NFT market has already entered the mainstream, but the most popular collections, such as Bored Ape Yacht Club, remain out of reach for most due to high prices,” said Eric Chen, CEO and co-founder of Injective Labs, during the announcement. “The Bored Ape Yacht Club perpetual issues at the minimum price are designed to allow ordinary traders to enter this market, thereby leveling the playing field for most to join the Bored Ape community.”
Derivatives and perpetual NFT contracts follow other concepts such as using NFTs as collateral for loans and fractional NFT markets. For example, an NFT lending platform called Arcade, has millions of dollars worth of NMTs as collateral. This platform allows NFT owners to borrow, lend, and make money with their Bored Apes or other popular value collections. In addition, statistics show that the fractionated NFT market is now valued at about $8,713,345.
In essence, the new perpetual NFT contracts give investors in digital collectibles the ability to buy or sell a derivative unplayable token at a certain price in the future. Injective Pro believes that a market for perpetual contracts with a minimum price will allow “more users to gain access to high-value assets or hedge against the volatility of the NFT market.” Meanwhile, NFT floor price data from coingecko.com shows the BAYC floor at 130, while Opensea statistics show that the floor on this NFT exchange is 138.5 ether.
Injective Pro details that the company worked with NFT portfolio management firm Nftbank to “create a custom price feed for the BAYC collection that validates the initial market price.”
Image credits: Shutterstock, Pixabay, Wiki Commons
