Over the course of this past weekend, CryptoPunks experienced a trading volume of over $26 million. This spike represents a global resurgence of interest in the now-famous NFT collection. Arthur Hayes, former CEO of BitMEX and a celebrity in the cryptocurrency world, has predicted that CryptoPunks will beat Ethereum (ETH) in US dollars. He makes this argument throughout the present market cycle. To Hayes, encoding status is what the collection represents in the digital age. He believes that it’s all in the perception and not necessarily the blockchain technology itself.
Hayes calls the phenomenon an “internet status game.” He likens it to the way rich people distill and diversify their wealth by acquiring more luxury automobiles and fine art. He envisions that investors will eventually re-invest their Ethereum profits into unique, top-shelf NFTs. In so doing, they’ll be laying bare their digital riches and raising their profile/status.
CryptoPunks, known for its limited supply of 10,000, is one of the first and most well-known NFT collections. Its deep-rooted cultural significance in Web3 provides scarcity and prestige, making it a coveted asset for collectors and investors alike.
In May, NODE, a nonprofit organization funded by venture capital firm Ribbit Capital, generated worldwide headlines when they purchased the intellectual property behind CryptoPunks. They bought it from Yuga Labs for something like $20 million. This acquisition gives the project much greater extensive foundation and future potential for development. The recent resurgence in on-chain NFT volume suggests a renewed interest in the digital asset class, potentially benefiting CryptoPunks and other prominent collections.
