Is CryptoPunks Challenging Month an Indicator of the Future?

Originally released for free in 2017, CryptoPunks get credit for being one of the original NFTs and based on how they've performed — approaching $1.7 billion in lifetime sales — they're arguably the most important NFTs in the space.

And while many CryptoPunks are still apparently yielding eye-popping returns, November was a month to watch for the extremely valuable dot matrix faces.

Thanks to the blockchain, every sale is seen, though the necessary disclaimer is that people can have multiple wallets and could technically be selling them to themselves to generate buzz.

Sales generated $134.6 million, its worst month since the market started exploding in July. A handful of cryptopunks sold at losses and the most interesting piece of data might be the lack of transactions and unique buyers.

There were only 273 sales in November from 194 unique buyers. That's the fewest sales in a month this entire year and the least unique buyers.

On Nov. 27, CryptoPunk 4961 sold for $393,889 after being sold for $411,337 just 13 days prior. CryptoPunk 3616 sold for a $29,658 loss after the buyer held it for 11 days. And CryptoPunk 7853 sold at a $77,065 loss after holding for 55 days.

So what's happening?

Are crypto people doing what they do best and holding/hodling or is there a liquidity issue at the current asking prices and a ceiling of sorts has been reached?

On the positive side, the average CryptoPunk in November sold for $493,066, beating the previous average monthly record set in October of $489,692. And there has to be some accounting for the fact that those who are native to crypto are used to not selling.

Influencer Gary Vaynerchuk, for example, bought 59 CryptoPunks for $32.6 million and hasn't moved a single one of them.

On the negative side, the buzz at the very top has dissipated.

Of the top 20 highest prices paid for punks, the most recent sale in that group is one that sold on Sept. 11 ($6.63 million).

CryptoPunks have proven to be less volatile than crypto itself though there are obviously some parallels since they're bought in crypto not in dollars. But how they do in the marketplace can serve as a strong indicator of the NFT space in general. If they are going to the moon, November proved it's not a straight path.