CryptoPunks, designed by Larva Labs in 2017, is a set of non-fungible tokens (NFTs). It has enjoyed tremendous success and has wrestled through difficult times in the ever-evolving digital marketplace. In 2021, the initial creation of 10,000 avatars became the poster child of the NFT boom. Individual NFTs from this collection, called the CryptoPunks, have fetched mind-blowing prices. In 2024, some NFTs in the CryptoPunks collection fetched as high as $56 million worth of ether (ETH) on the open market.
The recent sale of CryptoPunk #3100 for 4,000 ETH has sparked rumor and speculation about the death/health of the NFT market. CryptoPunk #3100, a rare “alien” avatar, has only 9 aliens out of 9,985 punks having this trait. It wears a hairband, an accessory worn by only 406 of the 9,742 punks. This serves to illustrate the fluid nature of value in the NFT ecosystem. Despite overall NFT trading volumes dropping, rare CryptoPunks like #3100 still sell for millions. It’s their rarity and distinct characteristics, though, that make them so desirable.
It is a sign of the times, revealing a troubling trend. The particular sale of CryptoPunk #3100 incurred a 500 ETH haircut that was over $10 million in dollar equivalent terms! This represented a nearly $300 billion loss from its November high, an astounding collapse by any measure. The extremely high value of CryptoPunk #3100 was largely due to the fact that it was rare – with unique attributes.
Looking at the recent sales of CryptoPunks, you could conclude that the market is in freefall. The current floor price of CryptoPunks is 42 ETH, or roughly $65,000, according to CoinGecko. Even with all the ups and downs, the five most expensive NFTs to date are still those from the CryptoPunks collection.
