- Hayes predicts CryptoPunks will outperform Ethereum in current market cycle.
- NFT sales surge as wealthy investors chase digital status symbols.
- Institutional backing boosts CryptoPunks’ position as elite blockchain assets.
According to Arthur Hayes, co-founder of BitMEX, CryptoPunks are positioned to outperform Ethereum during the current market cycle. In a post shared on X, Hayes described the shift as part of a broader trend where digital status symbols are becoming more valuable than the underlying blockchain infrastructure.
He stated that CryptoPunks could be compared to expensive products such as designer watches and rare art pieces, especially as digital fortune is now manifested using popular NFTs. Hayes is convinced that with Ethereum owners gaining stacked profits, they will start transferring wealth in NFTs such as crypto punks to exude status in virtual social spheres.
CryptoPunks is one of the oldest NFT sets and has a limited number of tokens (10000). The set is culturally significant. During the weekend, the collection trading exceeded the mark of $26 million, and half of the transactions were made on its marketplace.
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This increase marked a 460 percent weekly spike in sales volume, pushing the entry-level price to approximately 48 ETH, which is around $177,000. The floor price increase indicates why Hayes says that the elite NFTs might serve as a digital trophy to investors liquidating their core assets, such as ETH.
At the same time, transaction data linked to Ethereum depicted massive transactions of more than $100 billion. These trends indicate that the institutional capital might be shifting, leading to a possible increase in sell pressure in ETH and strength in the NFT markets.
Institutional Support Strengthens CryptoPunks’ Position
Earlier in May, the Infinite Node Foundation, backed by Ribbit Capital, acquired the intellectual property rights to CryptoPunks from Yuga Labs for about $20 million. The nonprofit announced plans to preserve and elevate the collection as a cultural asset through exhibitions and academic partnerships.
Node intends to run an Ethereum node to ensure long-term access and host a full collection display in Palo Alto. This is in a bid to re-position CryptoPunks no longer as collectables but as digital history.
In the meantime, Yuga Labs continues to own 414 CryptoPunks, worth more than $71 million. The stake they held indicates that they still believed the collection had pertinence and future demand.
As investor behavior shifts and digital status becomes a key factor, CryptoPunks are gaining momentum. Hayes’s speculation that CryptoPunk is going to beat Ethereum is becoming increasingly true due to market activity and institutional support.
CryptoPunks have already become objects of wealth in the realm of digital reality, with distinct cultural connections, supply, and rising popularity among high-net-worth investors. Current trends reflect Arthur Hayes’ view that the asset could surpass Ethereum in value performance this cycle.
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