4D dismantling Yuga Labs: From zero to "Web3 Disney", it only took two years

The original text comes from Dappradar, compiled by Baize Research Institute. The content has been slightly deleted due to space reasons, and interested readers are advised to read the original text:

As the second anniversary of the Bored Ape Yacht Club (BAYC) approaches, now is a good time to reflect on Yuga Labs' incredible journey and the impact it has had on the NFT and DApp world. In an NFT industry characterized by rapid changes, projects that consistently bring value to the community are good projects that can stand the test of time and withstand market ups and downs. While some NFT projects have given up on development or reneged on their promises to holders, or simply have not reached the heights expected, Yuga Labs has become a leading project dedicated to delivering value and helping its community of NFT holders grow.

In this report, we take a deep dive into the Yuga Labs ecosystem and analyze the reasons for its continued success.

1. Yuga Labs: A pillar of the rise of the NFT industry

Yuga Labs has become one of the most influential and successful companies in the NFT ecosystem. Its flagship NFT project, Bored Ape Yacht Club (hereinafter referred to as BAYC), holds the record for the most profitable NFT project in the world, with a total transaction volume of $2.88 billion.

Yuga Labs was established in February 2021 and incorporated in Delaware, USA. It has experienced rapid expansion in the past two years - it has acquired two of the most valuable NFT projects on the market, CryptoPunks and Meebits; it is currently developing its own game meta Universe Otherside.

Currently, Yuga Labs' 16 NFT projects account for 34.6% of the entire NFT market, achieving a total transaction value of $2 billion in the past two quarters alone. The company's success can be attributed to its commitment to bringing together art, identity, ownership, utility, interoperability, and culture to move the NFT industry forward.

BAYC started out as a collaborative art initiative, that is, allowing a community to develop and evolve a concept together. Today, BAYC is valued in the billions and counts celebrities such as Snoop Dogg, Logan Paul, and Justin Bieber among its holders.

On June 18, 2021, Yuga Labs launched a spin-off series for BAYC, the Bored Ape Kennel Club (BAKC), followed by the Mutant Ape Yacht Club (MAYC) on August 28, 2021. Those who hold BAYC can get it for free. These two NFT collections quickly gained high demand on the secondary market and attracted many celebrities to buy them.

Fast forward to March 2022, and Yuga Labs has raised $450 million in a funding round at a valuation of $4 billion. The round was led by venture capital giant Andreessen Horowitz (a16z), which has also funded many Web3 giants to help them get started, such as Dapper Labs, Coinbase and OpenSea. Other notable investors include Coinbase, Animoca Brands, Samsung and Google Ventures.

Although BAYC, BAKC, and MAYC represent the "artistic realization" in the NFT industry, Yuga Labs has not forgotten to continue to empower NFT and create exclusive benefits for the community, such as allowing BAYC holders to purchase exclusive products and use them to mint MAYC BAYC mutant serum, APE FEST tickets, and airdrop ApeCoin.

Yuga Labs has solidified its leadership in the NFT ecosystem through its unwavering commitment to providing users with a unique and valuable experience.

Yuga Labs has managed to build a strong ecosystem that continues to provide benefits and financial rewards to its users, and the momentum is not slowing down.

2. In-depth understanding of BAYC NFT ecology

From BAYC to Otherdeed Expanded, Yuga Labs has continuously launched innovative NFT projects, which are eagerly awaited by collectors and investors.

Launched in April 2021, BAYC was Yuga Labs' first project and has since become one of the most sought-after NFT collections on the market. It has the third highest total transaction value in history - $2.88 billion, after Axie Infinity and CryptoPunks,

Yuga Labs has also succeeded in creating a unique ecosystem for BAYC, consisting of interconnected NFT series, bringing high utility to BAYC holders. For example, with a BAYC NFT, the holder can get a BAKC NFT. The base price of BAKC has increased by 874% since its launch.

Over the past two quarters, BAYC has maintained the highest transaction volume among all NFT projects, with an average selling price of $100,675. Traders of this NFT made an average of 3.52 transactions.

MAYC had the second-highest transaction volume over the past two quarters, with an average selling price of $22,495. Traders of this NFT made an average of 5.72 transactions.

BAKC ranked eighth in transaction volume over the past two quarters, with an average selling price of $11,184. Traders of this NFT made an average of 7.50 trades.

However, the Yuga Labs ecosystem is not limited to collectibles.

3. The giant whale of BAYC

As BAYCs grow in popularity, it is critical to understand the distribution of ownership among holders to gauge the risk of price manipulation.

BAYC has a unique holder ratio of 56%, indicating a low risk of collusion among holders. The concentration of whales is only 4.59%, and compared with other NFT series, the possibility of large holders manipulating prices is relatively low.

Among the top holders, the largest whale holds 2.2% of BAYC ( 222 BAYC ) and 1.45% of MAYC. The second largest whale holds 86 BAYC, 88 BAKC and 32 MAYC.

Notably, NFT lending platform BenDAO’s smart contract holds 379 BAYC, reflecting traders leveraging BAYC for lending and leading DeFi use cases in the NFT industry. This development further enriches BAYC and demonstrates its adaptability to the ever-evolving NFT industry. As the BAYC community continues to grow and innovate, it remains a poster child for the potential of the NFT industry.

4. Exploring Yuga Labs' Game Ecosystem: From Dookey Dash to Legends of the Mara

The game ecosystem created by Yuga Labs has attracted much attention.

With the imminent launch of the metaverse platform Otherside, Yuga Labs is looking to create a unique gaming experience for its users. For example, they want Otherside to connect with the wider NFT industry and turn various NFTs into playable characters. Holders of other leading NFT items such as Cool Cats, World of Women, and RENGA, for example, will have the opportunity to don an avatar represented by their NFT at The Otherside.

The first test of Otherside took place in July 2022 with more than 4,600 players participating. On March 25, 2023, a second trial run took place with approximately 7,200 players participating.

On March 28, Yuga Labs released Legends of the Mara, a 2D-based strategy game. In the game, players learn about the Kodas, their origins, and their relationship to the Otherside. To play Legends of the Mara, players need at least an Otherdeed, a Koda, and possibly an Apprentice Mara. Each Otherdeed holder can claim a Vessel NFT, which has different functions such as hunting, farming and enchanting.

Since its launch, Otherside Vessels had a total transaction value of $6.32 million, while Otherside Koda had a total transaction value of $6.77 million.

Also, Yuga Labs isn't just focusing on the Metaverse. On January 18th, Yuga Labs launched Dookey Dash - not only a challenging game, but also an interactive coin-minting process.

To participate, users must hold a Sewer Pass. These passes were initially airdropped to BAYC and MAYC holders for free, and have since been launched on the secondary NFT market, with a transaction volume of up to $113.8 million.

The game has been a huge success, with more than 25,000 Sewer Pass holders accumulating 7.5 million runs of Dookey Dash, a total playtime of approximately 80 years, and an average of nearly 28 hours per player.

It follows that Yuga Labs has always valued exclusivity over accessibility, and Dookey Dash is no exception. The game is designed to reward existing community members with tradable game passes - accessible games that also have value on the secondary market. This exclusivity helps support a higher reserve price, allowing speculators to up their game while betting on the future value of the Sewer Pass.

However, the success of Dookey Dash has also raised questions in the community about the value and utility of these Sewer Passes after the game is over. But Sewer Pass holders need not worry, as Yuga Labs has announced that they will be able to participate in its next game - The Summoning.

On March 15th, holders will be able to convert their Sewer Pass into a "power core" HV-MTL, which corresponds to a mech robot. Dookey Dash scores will come into play here: the higher the score, the rarer the cores that can be exchanged for. There are eight cores to claim, adding new uniqueness to the experience.

Currently, the HV-MTL series has generated a transaction volume of USD 45.46 million.

Review: The performance of the BAYC NFT ecosystem in the last two quarters

As mentioned above, one of the most successful gaming-related NFT projects in the Yuga Labs ecosystem is Otherdeed. It achieved the highest transaction value among metaverse concept NFTs, with transactions totaling $322 million in the last two quarters. It has an average transaction value of $3,112 and a total transaction volume of 97,974. This means an average of 5.52 transactions per NFT and an average of 9.88 transactions per trader.

Another successful NFT series is Sewer Pass, which ranked 10th in the NFT transaction volume leaderboard, with a total transaction value of $113 million in just one quarter. It had an average selling price of $4,668 and a total of 23,494 transactions. This means an average of 2.08 transactions per NFT and 3.39 transactions per trader.

The latest series of gaming-related NFTs in the Yuga Labs ecosystem is HV-MTL, which will go live in mid-March 2023. Despite being relatively new, it achieved $20 million in transaction volume in just two weeks. Although the transaction volume of this NFT series is not large, there is an average of 1.66 transactions per NFT and 3.38 transactions per trader.

The Yuga Labs gaming ecosystem has been expanding with impressive results. Next, let's turn our attention to the next event of interest: how Yuga Labs' strategic acquisition played a key role in the company's success.

5. Acquisition of CryptoPunks and Meebits

Yuga Labs made headlines in March 2021 when it acquired the CryptoPunks and Meebits IP from Larva Labs. The acquisition significantly increased Yuga Labs' influence in the NFT industry, as the two NFT projects were valued at $2.42 billion and $370 million at the time. Therefore, after the acquisition, the valuation of Yuga Labs' NFT landscape increased to $8.1 billion by the end of March 2022, accounting for 42.6% of Ethereum's top 100 NFT projects.

The impact of the Yuga Labs acquisition was immediate, with both projects seeing a 1,000% increase in transaction volume the day after the acquisition news, and demand for CryptoPunks and Meebits continuing to surge. In fact, even in the past two quarters, the two projects have performed well, with CryptoPunks trading at $286 million and Meebits at $46 million.

It is worth mentioning that the average selling price of CryptoPunks in the past two quarters was $114,437, the highest among all NFT projects. Additionally, it has recently been heavily traded on Blur, with 87% of all CryptoPunks trading volume occurring on the platform. Interestingly, Blur’s average transaction size is 7.34% lower than CryptoPunk’s native NFT marketplace. This highlights that traders on the two markets are trading this NFT with different intentions.

Since the acquisition of CryptoPunks and Meebits, Yuga Labs has continued to make strategic arrangements in the NFT industry. In November 2022, the acquisition of WENEW and its flagship NFT series 10 KTF will propel Yuga Labs into the fashion industry. In the first quarter of 2023, 10 KTF accounted for 74% of the entire NFT fashion collectibles trading volume.

In conclusion, Yuga Labs' acquisition of CryptoPunks and Meebits from Larva Labs is a major move, further cementing its dominance in the NFT industry.

6. Leading the Web3 fashion revolution

In addition to the acquisition of 10 KTF, Yuga Labs has also made waves in the fashion industry through innovative cooperation. It has established partnerships with Gucci, Adidas and Puma, combining the fashion industry with Web3, trying to reshape the fashion landscape.

Yuga Labs x Gucci: Digital Fashion Luxury in the Metaverse

On March 27, Gucci announced a partnership with Yuga Labs to bring digital fashion luxury to the Metaverse. Gucci and Yuga Labs have signed a multi-year partnership agreement to collaborate on Yuga Labs' metaverse platform Otherside and its 10 KTF NFT. The collaboration aims to explore joint opportunities between Web3 and fashion and entertainment.

The two companies previously collaborated on a Gucci Grail NFT collection featuring designs from 10 KTF creator Wagmi-San.

Yuga Labs x Puma: Grailed PUMA Slipstream Sneaker Collaboration

On April 25th, Yuga Labs announced a collaboration with Puma to launch a custom version of the sneakers with the theme of 10 KTF.

Starting April 27th, Puma Nitro NFT holders and 10 KTF community members can get a custom version of the physical sneaker.

Emphasizing the intent to reimagine the traditional sneaker launch format, Puma Chief Brand Officer Adam Petrick said, "Through our long-term partnership with Yuga Labs, we are able to bridge the gap between the physical and digital worlds and showcase one-of-a-kind designs."

Yuga Labs x Adidas：Indigo Herz Pack

Adidas’ NFT project, Indigo Herz, recently launched the “Indigo Herz Pack,” which includes 2,145 pairs of limited-edition sneakers in collaboration with BAYC, PUNKS Comic, gmoneyNFT, and 2,195 limited-edition hoodies with PUNKS Comic art . Early access to Adidas ALTS NFT holders. (This is an example of how brands can create token-gated experiences to reward their loyal fanbase)

Yuga Labs' collaborations with Puma, Gucci and Adidas not only brought the boundaries of Web3 and fashion closer, but also increased brand awareness for all parties involved. These collaborations create new revenue streams and rebranding opportunities for the fashion industry, and demonstrate the limitless potential of integrating digital technology into the fashion industry.

As Yuga Labs continues to lead the way in collaborations with the fashion industry, it's clear that the future of fashion is being reshaped before our very eyes.

7. $APE: The Web3 Game Token with the Highest Market Cap

ApeCoin ($APE) is an Ethereum ERC-20 token issued by Yuga Labs, intended to be used as the currency of the gaming ecosystem. Initially, Yuga Labs airdropped $APE tokens to holders of certain NFTs such as BAYC and MAYC, and holders could potentially receive over $100,000 worth of tokens.

At the time of writing, $APE has a circulating market cap of $1.48 billion, making it the most valuable gaming token. From another perspective, traditional Web2 game companies, such as Ubisoft, which has a history of several decades, have a market value of only 3.46 billion US dollars, and Square Enix is ​​only 6 billion US dollars.

Yuga Labs has identified four main uses for $APE:

• Governance - Holders can participate in ApeDAO and decide the future direction of the community and the company.

• Unification of payouts - $APE can be used as the currency of the game ecosystem.

• Access - Holding $APE can provide users with additional airdrops or exclusive offline activities.

• Expansion - Developers of other games and metaverses can incorporate $APE into their projects, thereby participating in the Yuga Labs ecosystem.

It should be noted that $APE does not belong solely to Yuga Labs. Players can earn $APE in Benji Bananas, a P2E game developed by Animoca Brands. In this case, the game rewards are $APE and the game’s native token, $PRIMATE. Yuga Labs wants to expand the ecosystem with this type of adoption.

8. Conclusion

It’s clear that Yuga Labs plays an important role in the NFT industry, with its 16 projects accounting for 34.6% of the industry, with a total transaction value of $2 billion in the past two quarters. BAYC's impressive base price, the rapid rise of Otherside, and the successful acquisition of Yuga Labs have all contributed to its strong market presence.

However, the key to Yuga Labs' success is its unwavering commitment to delivering value to the community, which sets it apart from other projects. By consistently executing well-planned strategies and delivering on promises made to the community, Yuga Labs has become a reliable and trusted player in NFTs and the crypto industry in general.

According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.

risk warning:

According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.