In addition to the fall in the cryptocurrency market, the popular Ethereum (ETH) project Bored Ape Yacht Club (BAYC) also took a hit in the wake of the FTX crisis related to its company's low liquidity problems and alleged mismanagement of client funds.
It is understood that the price of BAYC's collection of non-fungible tokens (NFTs) experienced a drastic decline shortly after investors rushed to sell the digital asset during the ETH price plunge.
This follows because the price of BAYC has declined from its highest level of 152 ETH worth $429,000 earlier this year with the cheapest price available in the market amounting to $79,400.
Meanwhile, investors are said to see Cryptopunk as the most potential digital asset compared to other NFTs as its floor price climbed 6% to 66.75 ETh ($88,700) in the past 24 hours.
In fact, BAYC is likely to go down again this week if the FTX issue is not resolved as soon as possible as investors will sell their digital assets when the crypto market crashes.
Another reason that led to the fall of the crypto market was due to BendDAO, which is a lending protocol that allows users to borrow digital assets using NFTs as collateral.
Explained, BendDAO faced a liquidity crisis after it ran out of ETH and did not receive high enough bids to auction the NFT.
Therefore, the protocol members intend to lower the liquidation in order to make it easier for BendDAO to make an NFT auction.
