In a multi-million dollar auction, another rare CryptoPunk was sold.
Last night, Punk #5822, one of only nine Aliens from Larva Labs’ legendary CryptoPunks collection, sold for 8,000 Ethereum. 8,000 Ethereum was worth roughly $23.7 million at the time of sale. Deepak Thapliyal, the CEO of bitcoin infrastructure business Chain, purchased the piece and acknowledged his purchase shortly after by tweeting a photo of the Punk.
Punk #5822 is the most expensive CryptoPunk and one of the most precious NFTs in the world, with a price tag of $23.7 million. Punk #5822, another ultra-rare Alien, held the previous record for the most valuable CryptoPunk NFT, which sold for $11.75 million at Sotheby’s last summer. Over the last few months, several additional rare Punks, such as Aliens and their slightly more frequent Ape and Zombie equivalents, have sold for millions of dollars.
Due to their rarity, CryptoPunk NFTs like Punk #5822 are regarded as gems by the NFT community. Punks that are more prevalent aren’t quite as valuable, but they still fetch a high price: the lowest on the market currently trade for roughly 70 Ethereum, or slightly over $200,000.
Last year, demand for CryptoPunks skyrocketed as NFT mania spread across the cryptosphere and into the public. Two Alien Punks sold for 4,200 Ethereum each around the same time Beeple sold an NFT for $69.34 million at Christie’s, kicking off the CryptoPunk bull market in earnest. By the end of the summer, Visa had purchased its own CryptoPunk, and celebrities like Jay-Z had begun to adopt the popular custom of utilizing CryptoPunk NFTs as social media avatars.
CryptoPunks, like other NFT collections like Bored Ape Yacht Club, grew in value as NFTs gained popularity. Despite recent criticism regarding Larva Labs’ strong attitude to shutting down copycat collections, CryptoPunks has maintained a cult-like status, thanks in part to its historical relevance and the “fair launch” process (Larva Labs gave them away for free in June 2017)
Many so-called “blue chip” NFT collections are trending upwards, whereas significant assets such as Bitcoin and Ethereum are selling approximately 40% below their highs and have been shaky for weeks. With floor prices skyrocketing, hot avatar collections like Bored Ape Yacht Club and Azuki have had an especially great start to 2022. Despite the fact that many fungible assets appear to be in limbo, the NFT bull market appears to be holding strong.