The Bored Ape Yacht Club (BAYC) collection of non-fungible tokens (NFTs) has become one of the most popular NFT projects in the last year. After weeks of sustained appreciation, the current floor price for a single Bored Ape NFT is 1.30 ETH or $382,000. As the floor price rises, the decentralized derivatives exchange Injective Pro has revealed a perpetual market for NFT floor prices.
Injective Pro Lists NFT Base Price Perpetual Swap
On Thursday, Injective Pro, a decentralized derivatives exchange based on the Injective Network, announced the launch of a perpetual market for NFT floor prices. The team believes that offering floor price perpetual contracts can lower the barrier to entry for popular and expensive NFT collectibles such as BAYC. “[Floor price perpetuals enable] Retail users can trade based on the floor price of the NFT collection without actually keeping the NFTs themselves,” the exchange explained.
Bored Ape Yacht Club (BAYC) has one of the most expensive floor prices today, as a single BAYC NFT has a floor price of 1.30 ETH or $382,000. The reserve price gives the entire Bore Ape series a market cap of about $3.81 billion. Among the 6,401 owners, the 24-hour trading volume of the BAYC NFT series reached $7.99 million. The Injective Pro platform will allow clients to go long or short on the NFT floor for $1 or more.
“The NFT market has now entered the mainstream, but the most popular collections like Bored Ape Yacht Club are still out of reach due to high prices,” Eric Chen, CEO and co-founder of Injective Labs, said in the announcement. “Bored Ape Yacht Club ‘s floor price perpetual contracts are designed to make this market accessible to everyday traders, thus leveling the playing field for the majority to join the Bored Ape community.”
NFT derivatives and perpetual contracts follow other concepts, such as using NFTs as collateral for loans and segmenting the NFT market. For example, an NFT lending platform called Arcade has millions of dollars worth of NFTs escrow. The platform allows NFT owners to borrow, lend and earn money through their Bored Apes or other popular collectibles of value. Furthermore, statistics show that the segmented NFT market has a market valuation of around $8,713,345 today.
Essentially, the new NFT perpetual contracts enable digital collectible investors to buy or sell non-fungible token derivatives at a certain price point in the future. Injective Pro believes that the floor price perpetual market will allow “more users to gain exposure to high-value assets or to hedge against NFT market volatility.” Meanwhile, NFT floor price data from coingecko.com shows BAYC’s floor price at 130, while Opensea’s statistics show that this particular The floor price for NFT exchanges is 138.5 ETH.
Injective Pro’s announcement details the company’s partnership with NFT portfolio management firm Nftbank to “create custom price feeds for BAYC collections to validate the market’s initial price.
What do you think of Injective Pro’s Bored Ape floor price perpetual contract? Let us know what you think about this topic in the comments section below.
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