Analyst Notes: BAYC Chain, NFT Value Accrual, and The Otherside
Key Insights
- Amidst the exuberant demand for BAYC land – Otherside NFTs – Yuga Labs has proposed that ApeCoin will need its own blockchain, Layer-2/subnet, or other sidechain solution.
- Messari analysts examine the consequences of Yuga Labs launching a scaling solution and its effect on the value accrual of other assets within the BAYC ecosystem.
BAYC’s Land NFT – Otherside – sale was simultaneously one of the most egregious burns of ETH in recent history and a monumental accomplishment – from a demand perspective – for the monkey-branded NFTs. Now, amidst the exuberant demand for BAYC land – Otherside NFTs – Yuga Labs has proposed that ApeCoin will need its own blockchain, Layer-2/subnet, or other sidechain solution. While Yuga Labs didn’t provide any other clarity, they’ve encouraged the DAO to start thinking in this direction.
With the launch of the Otherside NFTs, the BAYC brand is collectively worth ~$25 billion, or about 12% of the market capitalization of Disney.
Analyst Notes on BAYC
Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
Tom is a Sr. Research Analyst at Messari. His primary focus is on Layer-1's as well as the relationship between traditional finance and crypto. Prior to joining Messari, Tom worked in Investment Consulting at Meketa and Investment Management at SSGA. Tom studied Finance at Bentley University and earned his CFA and CAIA Charters.
Chase's interest in crypto lies at the intersection of economics, psychology, and social coordination.
Mason was a Senior Research Analyst at Messari focused on Web3 protocols and cryptoassets. Before Messari, Mason worked at ConsenSys as a Content Marketer focused on marketing strategy. Mason obtained his Master’s in Business Management at Hong Kong Baptist University.