Wealth Effect: Second-Oldest Almost-Free NFT Collectibles Captures Market Attention
Even amidst the Bitcoin price rallying past $60k and the overall crypto market to $1.85 trillion, non-fungible tokens (NFTs) continue to capture attention.
And the latest project to do so has the Internet's most popular thing: cats. MoonCats ruled the Crypt Twitter (CT) this past week.
Interestingly, MoonCats are older than the popular CryptoKitties on which people spent millions of dollars in December of 2017, the previous bull market. While the CryptoKitties contract was submitted last in Nov 2017, the contract of MoonCat was submitted nearly four months before that in early August.
This makes MoonCats second oldest NFT after CryptoPunks, which stands at second place in terms of crypto collectible all-time sales volume of over $151 billion, as per CryptoSlam.
While minting them was almost free, except for the gas cost, they are now being sold at a significantly higher price. The interest in rescuing these cats was so high that in a few hours of the minting, MoonCats accounted for the second-highest transaction fees on the Ethereum network.
The white and black #MoonCats are the rarest ones. 3 white cats have sold for 100, 100 and 88.8 ETH respectively. #NFTs with historical significance will always tell a story in the future. pic.twitter.com/Tpt3CTDQ2J
— Allen Hena (@RealAllenHena) March 13, 2021
As of writing, there are 1,774 holders of the limited 25,600 MoonCats.
Developed by Ponderware, the Twitter account of the creator also came back to life last week after more than three years with: “Attempting to re-establish contact with the moonbase.”
Much like CryptoKitties that garnered so much attention and money during the bull market, this time as well, the rising prices have provided the people an opportunity to bid crazy high prices for digital art.
Central bank -> commercial banks -> asset managers -> Bitcoin -> Ethereum -> DeFi -> NFT
— Qiao Wang (@QwQiao) March 14, 2021
As Qiao Wang of DeFi Alliance said,
“Ever wondered why the NFT boom is happening *now*? Not 6 months ago or 6 months in the future? Because every crypto native just 2x, 3x, 4x'ed their net worth. And their enthusiasm infected others. Which then turned into a global phenomenon. But ultimately, it's wealth effect.”