CryptoPunks Surge Amid Debate Over Authenticity and Legacy

Punks Jump +60% In Daily NFT Sales – Here’s What Fueling Its Growth

Daily NFT sales for CryptoPunks, one of the pioneering NFT collections on the Ethereum blockchain, surged by more than 60% in a recent period, signaling renewed interest in the iconic profile picture (PFP) collection. Despite ongoing controversies surrounding the V1 versions of the NFTs and internal debates within the community, the broader NFT market appears to be reassessing the collection’s value.

The recent rise in sales follows a series of developments that have rekindled interest in the early NFT project. Initially launched in 2017 by studio Larva Labs, the CryptoPunks collection gained widespread recognition as the first pixel art-based NFTs to be minted on Ethereum. However, the V1 version of the collection, which was later deprecated due to a technical error in the original smart contract, has sparked heated discussions among collectors and developers. These V1 Punks were reissued as ERC-721 tokens, featuring distinct visual attributes, and have since been treated as collectible artifacts by some buyers.

The controversy escalated in early 2022 when Larva Labs, the creators of CryptoPunks, issued a statement declaring that the V1 NFTs were not “official” CryptoPunks. This stance led to criticism from the community, especially after it was revealed that members of the team had sold several V1 Punks for substantial gains. In response, co-founder Matt Hall issued a public apology, acknowledging that the decision to sell V1 NFTs was a misstep. The team later committed to using part of the proceeds to repurchase V2 NFTs and donate 210 ETH to the Rainforest Foundation.

Despite the controversy, V1 Punks have maintained their appeal in the secondary market. In late 2024, investment firm Meta4 Capital purchased two V1 Punks for a combined total of 1,200 ETH (approximately $3.35 million at the time), signaling confidence in the historical significance of these early NFTs. Brandon Buchanan, a managing partner at Meta4 Capital, argued that V1 Punks should be valued for their unique position in NFT history and compared them to rare, error-prone collectibles like vintage comic books or rare stamps.

Meanwhile, the broader NFT market has seen a shift in preference toward newer, community-driven NFT projects, particularly Bored Ape Yacht Club (BAYC). Unlike CryptoPunks, which have remained largely static since their launch, BAYC has introduced exclusive benefits for holders, including merchandise, virtual experiences, and access to private events. These features have helped BAYC attract high-profile celebrities and investors, leading to a substantial increase in its market value. As of the latest data, BAYC’s floor price has exceeded 100 ETH, while CryptoPunks’ floor price stands at approximately 69 ETH.

The renewed interest in CryptoPunks appears to be driven by a combination of nostalgia, historical significance, and market speculation. As NFTs continue to evolve, the debate over the authenticity and value of early NFT projects remains unresolved. However, the recent price surge suggests that collectors are willing to pay a premium for NFTs that represent the formative era of digital art and blockchain-based ownership.