CoinGecko: Ten of the 25 largest NFT liquidations were Bayc-backed loans

[wilkine]

CoinGecko has highlighted the potential risks associated with borrowing against NFTs, particularly the risk of liquidation. This has prompted an analysis of significant instances of NFT liquidation and the corresponding trends.

In the realm of NFT liquidations, a notable pattern emerges. Among the top 25 cases, Bored Ape Yacht Club (BAYC) collateral was linked to 10 loans, resulting in a collective loss of $754,000 for borrowers. Autoglyphs, a prominent NFT collection, follows closely, accounting for four of the top 25 liquidation cases and leading to debtor losses of $372,000, which constitutes 22.6% of the total. Wrapped Crypto Punks also contributed four cases, with debtor losses amounting to $177,000 (10.8%).

ArtBlocks enters the scene with its curated projects backing loans that faced the worst liquidation loss of $164,000, translating to a 10% debtor loss. This evaluation examines Ethereum NFT loan liquidations through the lens of debtor losses, calculated by comparing loan debt to collection floor prices during liquidation. The analysis draws on data from SnowGenesis, CoinGecko NFT, and NFT price floor data.