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LooksRare’s LOOKS Ready To Melt Faces: Analyst Predicts 10000% Surge Above $5.2

LooksRare first burst into the scene as one of the first NFT marketplaces to carry a vampire attack on OpenSea and it was rewarded heavily as its LOOKS token enjoyed great success. Just like the rest of the crypto market, the LOOKS has since succumbed to the bearish headwinds, losing over 98% of its bull market highs. However, this might not continue for long as one crypto analyst has predicted a massive burst that could send the price toward its previous highs.

LOOKS Poised For Parabolic Move

In an analysis posted on TradingView, a crypto analyst that goes by without_worries on the platform has predicted a meteoric price rise for the LOOKS token. The analysis identifies major indicators that have turned bullish, pointing to a 10000% increase in price.

First, the analyst notes that the price action and the RSI resistance breakouts point to a potential bull rally. Then there is also the fact that multiple oscillators have turned toward a positive divergence with the price action that has been recorded. As the analyst explains, this positive divergence continues to get stronger with a move up in the timeframe.

The third factor that points toward this rally is the panic in the crypto market. Volume has been on the rise as investors scrambled to get back in the market and take advantage of the rising prices. “Every sell off is met with a large volume increase,” the analyst states.

LooksRare LOOKS price chart from Tradingview.com

A falling wedge pattern that uses the highest to the lowest touch points also supports this theory of a breakout. So while it is likely that the price could keep falling, there is a higher chance that it will begin to climb, the analyst explains.

Furthermore, the analyst identifies the fact that LOOKS is yet to be listed on major exchanges such as Binance. As such, this provides a unique opportunity to get into the coin before it gets on investors’ radars.

LooksRare Recovery To New Highs

The analysis which was first posted on November 22 put one of the price targets just above the $5.2 level, which would be an initial 5,000% move from the $0.097 price mark at the time.

However, given the analyst’s 10,000% increase prediction, there is the expectation that the altcoin will cross its previous all-time high price of $7. Completing a 10,000% move from here would see the price rise to $9 which would be a new all-time high price.

A breakout seems to have already begun for the LOOKS price by Friday. The price is already over 23% up and continues to show bullish tendencies. However, there is no timeframe presented by the analyst for when this 10000% move would be completed.

LooksRare LOOKS price chart from Tradingview.com

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LooksRare Monthly NFT Trading Volume Flash Crashes 97% In October: What’s Next?

The monthly trading volume of LooksRare, a decentralized non-fungible token (NFT) and digital collectible marketplace, is down 97%, crashing from $71.9 million registered in September 2023 to just $2.1 million in October, Token Terminal data shared by Web3 Academy on October 26, via X shows. 

LooksRare’s Monthly Volume Tanking, Falls To $2.1 Million In October

The unprecedented drop in activity couldn’t be pinned on any particular LooksRare-related event when writing on October 26. This contraction is despite the broader cryptocurrency market recovering, rising as seen by the welcomed expansion of leading assets, including Bitcoin (BTC) and Ethereum (ETH).

According to trackers, monthly volume has been falling steadily since April 2023. Then, the average volume exceeded $150 million, pointing to rising interest, especially from traders. At that time, it should be noted that most crypto assets were also growing.

LooksRare monthly trading volume dropping| Source: Web3 Academy on X

Specifically, Bitcoin broke higher, touching $30,000, triggering demand and reviving hopes that the market was looking up again following the collapse in 2022. By June through September, the average monthly volume in LooksRare had more than halved before plunging to less than $3 million in October 2023.

The spike in monthly trading activity in April coincided with the release of LooksRare v2, which saw the platform’s developers reduce trading fees by 75% from 2% to 0.5%. The updated version is also more gas efficient, allowing traders to save up to 30% on gas compared to the previous edition. Moreover, with LooksRare allowing traders to place bulk orders when buying or selling, monthly volume rapidly rose in April.

NFT Bull Run Postponed, Will LOOKS Break Resistance Line?

With activity rapidly contracting, LOOKS, the native token of LooksRare, has also been flat-lining, looking at price action. The token trades around the $0.070 level at spot rates, retesting August highs. However, an inverted hammer suggests that the uptrend momentum could wane, and bears might reverse gains.

Despite concerns, LOOKS is up 60% from H2 2023 lows and may still rally in the months ahead. Looking at the candlestick arrangement in the daily chart, a close above $0.070 with expanding volumes could set the ball rolling for buyers who expect the token to retest 2022 lows at around $0.12.

LOOKS price on October 26| Source: LOOKSUSDT on Binance, TradingView

Overall, NFT and digital collectible trading activity remains relatively lower, even with bullish traders expecting prices to turn around and rally in 2024. Recently, there was a brief increase in the floor prices of leading NFT collections like Bored Ape Yacht Club (BAYC), Azuki, and CryptoPunk. However, with trading volume and the number of new owners still at record lows, researchers put off the chance of an NFT bull run starting in Q4 2023.

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Rarible To Stop Aggregating Orders From These Three NFT Marketplaces – Here’s Why

Non-fungible token (NFT) aggregator Rarible has plans to cease aggregating orders from marketplaces OpenSea, LooksRare, and X2Y2. The decision comes after OpenSea decided to shift to an optional royalty model.

On Thursday, August 17, OpenSea disclosed that royalties – pay cuts from secondary sales – will become optional for new NFT collections after August 31, 2023. Meanwhile, royalty fees for NFT collections that currently utilize the Operator Filter – a feature that enforces creator royalties – will become optional after February 29, 2024.

Although the optional royalty model has always been a source of debate in the NFT community, many marketplaces embrace it – with X2Y2 and LooksRare introducing zero royalty fees for artists as far back as 2022.

Rarible Throws Support Behind NFT Creators And Artists

On Tuesday, August 22, Rarible announced – via a post on X (formerly Twitter) that it will no longer aggregate orders from OpenSea, LooksRare, and X2Y2 by September 30. According to the NFT aggregator, this decision was taken because of its “unwavering support for NFT creators and artists.”

Alex Salnikov, co-founder of Rarible, said in a statement:

The principle of royalties is at the heart of decentralization – a continual affirmation of a creator’s value in every transaction. We stand in solidarity with creators and artists. That’s why we will no longer support marketplaces that neglect royalties.

The Rarible co-founder stated that by making royalties optional, the value and compensation for creativity are also being stripped off. “Decentralization offers the opportunity to dispel the stigma of the “starving artist,” and enable the continued growth of projects through true ownership and ongoing earnings,” he noted.

Salniko urged the NFT community to become more active in defining the future of Web3.

Pressure Mounts On OpenSea

This news is another potential setback for OpenSea, especially as Rarible is not the first NFT entity aiming to cut ties with the one-time largest digital asset marketplace due to its proposed zero-royalty shift. 

On Friday, August 18, Yuga Labs – creators of the popular Bored Ape Yacht Club collection – declared that it had begun the process of sunsetting support for OpenSea’s SeaPort for all “upgradable contracts and new collections” before February 2024.

Despite the seemingly waning interest in the collection, Bored Ape Yacht Club is still one of the most significant contributors to the total trading activity on OpenSea. It ranks as the top collection on the marketplace, with a daily trading volume of 1,440 ETH (approximately $2.37 million). 

Hence, losing this blue-chip collection – and other Yuga Labs’ creations – will likely affect OpenSea’s performance and position in the market. 

According to a new Messari report, Blur remains the dominant marketplace, accounting for about 60% of the total NFT trading volume.

Rarible

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What Are The CryptoPunks V1? And, How Can They Disrupt The Market?

Are the CryptoPunks V1 the original CryptoPunks? Technically, yes. According to LarvaLabs, the company behind the collection, the V1s “are not official Cryptopunks,” though. How will the market react now that they’re making a resurgence? This might be the first, but it’s not the last time you’ll hear about the CryptoPunks V1. Let’s explore their history and the controversy around them.

Related Reading | Snoop Dogg Joins The Bored Ape Yacht Club And The Sandbox. Read All About It

What Are The CryptoPunks V1?

Back in 2017, prehistory for the NFT market, LarvaLabs distributed 10.000 CryptoPunks V1. However, there was a fatal mistake in the governing smart contract. After a transaction, it allowed the buyer, not the seller, to withdraw the money. The buyer could literally have its cake and eat it too, leaving the seller completely in the red. 

Here’s a thread explaining the technical details of the faulty contract:

Explaining the V1 CryptoPunks exploit…this one is incredibly tricky so want to share what I learned!

TL;DR – when a buyer purchased a punk, the ETH deposited in the contract could be withdrawn only by the *buyer*, not by the seller. So buy(), withdraw(), repeat. pic.twitter.com/apGwackvMz

— foobar (@0xfoobar) March 24, 2021

What did LarvaLabs do? They disowned the original series and started again. They gave away another set of 10.000 CryptoPunks, the V2, and the rest is history. The almost free collectibles gained traction little by little and became the behemoth they’re today. All of the CryptoPunks in circulation were  V2s, until now…

A Rebel Marketplace Arises

The CryptoPunks V1s still exist, but they had no marketplace to commerce in because Open Sea banned them. However, a new platform came into town and allowed them to reappear. This time, they’re called Classic Punks or Wrapped CryptoPunks V1, because to be able to sell them you have to wrap them in a new smart contract that doesn’t have the know vulnerabilities of the original contract.

The rebel marketplace is LooksRare.org and, so far, these up-and-coming NFTs have made 307.44 ETH in sales. Not bad, considering there are only 116 holders and LarvaLabs owns at least 1000. In LooksRare, only 23 owners are selling 269 items, so they’re pretty rare. The marketplace describes them as:

“A wrapped CryptoPunk from the initial exploited V1 contract version. Buyer beware – if you don’t understand the preceding sentence, this is not the CryptoPunk you’re looking for.”

Another buyer beware has to be, that low number of holders means that a few people have control of the market and can potentially manipulate it as they see fit. So, tread lightly. 

ETH price chart for 02/04/2022 on Kraken | Source: ETH/USD on TradingView.com
LarvaLabs Disowns The CryptoPunks V1

Through their public channels, the only thing LarvaLabs said was: “PSA: “V1 Punks” are not official Cryptopunks. We don’t like them, and we’ve got 1,000 of them… so draw your own conclusions. Any proceeds will be used to purchase real Cryptopunks!”

PSA: "V1 Punks" are not official Cryptopunks. We don't like them, and we've got 1,000 of them… so draw your own conclusions. Any proceeds will be used to purchase real Cryptopunks!

— Larva Labs (@larvalabs) January 25, 2022

However, in the company’s official Discord channel, they are threatening legal action. They also admitted that they sold a bunch of CryptoPunks V1 because they thought that by “selling some of the tokens we would signal our distaste for it.” According to LarvaLabs, they’ve been using the 210 ETH that they received to buy V2 CryptoPunks. And they matched that amount and made a donation to the Rainforest Foundation. 

Here’s trader extraordinaire and crypto influencer Cobie explaining the situation:

wtf is larva labs doing tbh pic.twitter.com/KmgMlBwBGW

— Cobie (@cobie) February 2, 2022

As he puts it, “they dumped on people and now they’re trying to make what they dumped as worthless as possible.” Real people paid those 210 ETH. Why do they have to suffer? However, they might end up with the upper hand. LarvaLabs can use all the legal tricks that they want, but they can’t destroy the CryptoPunks V1 contract. 

The Intricacies Of The V1 Contract

As this pseudonymous Twitter user puts it, “my understanding is the contract code is permanent – you can only update a contract post deployment by calling the selfdestruct() function, if there is one. A function which neither of the two Crytopunk contracts have!”

@larvalabs cannot do that with v1 punks because, both their v1 and v2 contracts point to the same file!

You'll find this identical imageHash in both contracts:

ac39af4793119ee46bbff351d8cb6b5f23da60222126add4268e261199a2921b pic.twitter.com/cg0AFQR7Tt

— Stroudonian (@0xStroudonian) January 29, 2022

Not only that, there’s another way to destroy a contract, and here’s where the big reveal comes. “Because of ETH’s extortionate storage costs, most use external forms of storage (punks are off-chain art!). In layman’s, contracts essentially include a link to specific reference point, which contains the image. LarvaLabs cannot do that with v1 punks because, both their v1 and v2 contracts point to the same file!”

Oh, what a tangled web we weave!

And that’s the story of the CryptoPunks V1.

Related Reading | Will NFTs Kill Traditional Art? Famed Collector Cozomo de’ Medici Makes The Case

The CryptoPunks V2 Market

According to NFT Stats, “The total sales volume for CryptoPunks was $41.42M. The average price of one CryptoPunks NFT was $232.7k. There are 3.373 CryptoPunks owners, owning a total supply of 9,999 tokens.” Let’s check in a few years to see if the CryptoPunks V1 make a dent on that.

Featured Image: Screenshot of CryptoPunks V1 from LooksRare | Charts by TradingView