The undisputed largest NFT studio in the industry, Yuga Labs, continues to expand its operations. The company announced the acquisition of rival non-fungible token creator Proof, best known for its Moonbirds collection. Yuga Labs CEO Daniel Alegre stated in his announcement that he is excited about PROOF joining the Yuga ecosystem as a company dedicated to supporting art, culture, and community within the Blockchain ecosystem.
Yuga Labs Makes a Notable Move
Yuga Labs, when asked how much it might have paid to acquire Proof, founded by entrepreneur Kevin Rose, refused to disclose any details regarding the purchase.
Although Proof’s Moonbirds collection was once one of the most famous NFT brands in the market, it never consistently matched the sales volumes achieved by Yuga Labs’ Bored Ape Yacht Club. Yuga Labs announced plans to incorporate Moonbirds into its gamified metaverse game Otherside. Alegre commented on the matter:
“Moonbirds is a collection with great potential and there are many unifying brand elements with Otherside. We eagerly anticipate PROOF Collective’s ongoing art and community engagement efforts to become an important part of our endeavors.”
What’s Happening in the NFT Market?
Although NFT transaction volumes in the market have recovered somewhat since the end of last year, they continue to fall well below their performance during the bull run of 2021 and 2022. According to CryptoSlam data, Bored Ape Yacht Club NFTs surpassed $200 million in monthly sales volume several times during this period.
Another set of CryptoSlam data shows that while the Moonbirds collection nearly reached $500 million in transaction volume in April 2022, since then, the brand’s NFTs have consistently stayed below $5 million in monthly sales. Yuga Labs provided the following statement:
“Proof’s CEO and Founder Kevin Rose will go through a brief transition period before becoming an advisor to the company.”
Other Proof brands that Yuga Labs will take control of include Moonbirds’ side collections Oddities, Mythics, and Grails. In his statement, Rose expressed excitement about incorporating Moonbirds into Otherside and stated that the combined resources of the two companies would allow for faster innovation and reaching more people.
In 2022, Andreessen Horowitz, also known as a16z, led a $50 million Series A funding round for Proof. A16z also invested in Yuga Labs in the same year.
