Pudgy and Milady NFT Prices Surge Despite Decreased Market Liquidity
This is a segment from the Empire newsletter.
Crypto Portfolio Strategies
Cobie discussed a pyramid-shaped philosophy for building a crypto portfolio, suggesting a capital spread of 50% in bitcoin, 35% in ether, and 15% in solana. This strategy would have yielded significant returns during the current bull market.
NFT Market Performance
Milady and Pudgy NFTs have significantly outperformed traditional cryptocurrencies. USD-denominated floor prices for these collections have increased over 20x since December 2022. The cheapest Miladys, previously worth $890, now sell for $22,570. Similarly, Pudgys have risen from $5,070 to $106,900, surpassing bitcoin in floor price despite lower supply.
Bitcoin has seen approximately a 6x increase, ether 3x, and solana 18.5x. NFT markets are generally smaller and less liquid, often experiencing substantial price increases with sudden volume spikes. Notably, there were about 1,000 trades for Pudgy Penguins and 400 for Milady in the past week.
Comparative Asset Performance
Floor prices for other notable NFT collections like Azuki, Doodles, and CryptoPunks have more than doubled but still lag behind most major coins. Bored Apes and Nouns have decreased in value against the US dollar. Only PEPE among top-25 coins has outperformed Milady and Pudgy NFTs.
The current trends indicate potential volatility and exaggerated movements in the next phase of the bull market.