CryptoPunks Soar Past $200K, Hayes Was Right: NFTs Outperform ETH in Status Game

CryptoPunks are back in the spotlight. From GameSquare’s headline-grabbing purchase of CryptoPunk #5577 to an anonymous whale sweeping up six hoodie Punks, fresh stories are surfacing daily and fueling the market’s momentum.

Between 20 and 27 July, CryptoPunks led the NFT market with $33.8 million in trading volume, their strongest week since March 2024. The collection captured nearly 40% of the $84.6 million total tracked across 18 projects. In the past 24 hours alone, Punks recorded 835.22 ETH ($3.18 million) in trades from 14 sales, representing 20% of overall NFT market activity.

Launched in June 2017, CryptoPunks are widely recognized as one of the earliest and most influential PFP NFT projects on Ethereum. Each Punk is a 24x24 pixel art image generated algorithmically, forming a set of 10,000 unique characters with ownership recorded directly on-chain.

As CryptoPunks hits a new high in 2025, with the floor price soaring above $200,000 for the first time since 2022, a new flex is making the rounds on Crypto Twitter: “If you are rocking a PFP under $200K plz don't @ me or share your opinion on my wall.” What started as satire has turned into a full-blown meme, echoed by CryptoPunks holders. The image says it all:

Even the AI agent @ribbita2012 now uses a CryptoPunk as its profile picture. It features CryptoPunk #9098, which was purchased for 89 ETH on July 29.

Ironically, this elitist energy did not originate from the CryptoPunks community. It started with Bored Ape Yacht Club (BAYC) holder @Yieldasaurus, who publicly mocked NFT projects priced below $100,000. The tagline quickly spread across CT, becoming a way to meme around while subtly flexing the high value of one’s own NFT.

However, the hype did not last. BAYC peaked on May 1, 2022, reaching an all-time high of 153.7 ETH, valued at $420,430. Coincidentally, the tweet was posted on May 14, 2022, just two weeks after reaching ATH. His post has been mocked since then, as BAYC’s price dropped significantly after the crash.

CryptoPunks: The Original Experiment That Shaped NFTs

While iconic, CryptoPunks are less favored by traders focused on short-term flips. The high price is one reason; limited liquidity is another. This is a common problem when trading NFTs, especially during a market downturn, and with Punks, the issue becomes even more pronounced. Buying a Punk means locking a large amount of capital into a single asset, and when it is time to exit, it may not sell quickly.

Born in 2017, CryptoPunks are not ERC-721 tokens. Instead, they were created using a custom contract that modified the ERC-20 standard, making them one of Ethereum’s earliest and most distinctive experiments. This legacy architecture introduces complexity to trading, as the majority of modern NFT marketplaces are designed around ERC-721 compatibility. Even today, Etherscan continues to classify CryptoPunks under the ERC-20 standard.

Although this custom design limits interoperability, it also played a significant role in inspiring the development of ERC-721, which has since become the foundation for most NFTs. In order to trade CryptoPunks on standard platforms, they must first be wrapped into ERC-721 tokens. While this process enhances compatibility, it is not without risk: if the wrapping or unwrapping fails, the NFT could be permanently lost.

Meet Punk OTC, the Legendary Trader Turning CryptoPunks Into Millions

Active traders often overlook CryptoPunks because of their high price and limited liquidity, but one notable exception stands out: Punk OTC, a legendary trader dedicated exclusively to CryptoPunks.

According to available data, Punk OTC operates through three main wallets used exclusively for CryptoPunk trading. As the time of writing, all three wallets hold 131 CryptoPunks, having spent 117,620 ETH (approximately $447.19 million) on purchases and earned 123,870 ETH (about $470.98 million) from sales, making net profit of 6,250 ETH ($23.79 million). However, these figures may not capture the complete picture, as some transactions could have occurred privately or through over-the-counter (OTC) deals that are not publicly recorded.

Punk OTC remains highly active, consistently buying and selling Punks at the same time. For him, CryptoPunks trading is not only viable, but highly profitable. He also facilitates large transactions, helping funds and collectors scale into CryptoPunk positions or assisting OG holders in scaling out, navigating the complexity of handling these assets.

One Choice: BTC, ETH, or CryptoPunks

Arthur Hayes, co-founder of BitMEX, recently posted that, "Cryptopunks will outperform ETH this cycle in USD terms because ETH bag holders will flex in NFTs, it’s an internet status game."

To test this claim, a simple comparison is made between holding a CryptoPunk NFT versus holding Ethereum (ETH), with July 29 as the final reference point. The goal is to see which investment delivers a higher USD value by that date.

Methodology for CryptoPunk vs ETH Investment Comparison

Initial Setup

• The analysis starts on January 1, 2025.

• An investor has an amount of ETH and faces two choices:

  • Buy 1 CryptoPunk NFT at the floor price of 36.74 ETH.

  • Hold 36.74 ETH without trading or staking.

Assumptions

• Both investments remain untouched throughout the analysis period.

• Historical ETH prices and CryptoPunk floor data are sourced from CoinGecko.

• Monthly values are benchmarked in USD for a fair comparison.

• CryptoPunk USD values are calculated by multiplying the floor price in ETH by ETH’s USD price at each data point.

When ETH Fell, CryptoPunks Defied Gravity

During ETH’s 46% drawdown from January to May, the CryptoPunk floor price actually rose from 36.74 ETH to 43.98 ETH. This may seem counterintuitive, as most other NFT projects typically show a direct proportional relationship, with floor prices climbing when Ethereum trends upward.

CryptoPunks, however, behave differently in this period of time. When ETH’s price declines, their floor prices in ETH often rise to preserve a relatively stable USD valuation. The message is clear: CryptoPunks are in a class of their own, functioning as a valuation asset rather than just another NFT. Even when their USD value drops, the prestige and status tied to these OG NFTs remain untouched.

That said, the first half of 2025 was painful for everyone. ETH holders suffered heavy losses, while Punk holders were mocked on Crypto Twitter for stacking ETH, yet watching their USD values decline. FUD around Ethereum spilled over into NFTs, and even OG collections like CryptoPunks felt the ripple effects.

Punks Outperform: 66% Gains vs ETH’s 13%

The analysis showed that CryptoPunks decisively outperformed ETH, delivering 46.9% higher returns (+$65,092) over the 7-month period in 2025. Holding a CryptoPunk NFT yielded a 66.4% gain relative to its January value, while simply holding 36.74 ETH resulted in only a 13% increase over the same period.

The absolute dollar difference highlights the gap between the two investments. As of July 29, a CryptoPunk was valued at $203,808, while 36.74 ETH was worth $138,716, creating a $65,092 lead for the NFT. In percentage terms, this gap translates to a 46.9% outperformance for CryptoPunks compared to holding ETH.

Comparison to Bitcoin

CryptoPunks are often compared not only to Ethereum but also to Bitcoin, the digital gold. For this comparison, a straightforward approach is used by measuring how many Bitcoin one CryptoPunk is worth. As of July 29, one CryptoPunk equated to 1.73 BTC. This represents a 32% outperformance for CryptoPunks compared to holding Bitcoin over the same period.

This analysis shows that, over the observed 7-month period, CryptoPunks not only outperformed ETH but also outpaced BTC. The results highlight a critical shift in how value is perceived on-chain: beyond technical fundamentals or monetary policy, cultural capital plays a defining role.

CryptoPunks have evolved into a store of value driven by scarcity, provenance, and status signaling, allowing them to capture returns that traditional crypto assets did not during this cycle.

CryptoPunks Aren’t Just NFTs Anymore

Today, CryptoPunks are more than just an NFT collection. They have become a category of their own, representing not only digital art but also the valuation of onchain assets. On X, a Punk is less about aesthetics and more about what it signals: influence.

From inspiring ERC-721, the foundation of modern NFTs, to popularizing pixel art as a staple in digital art collections, CryptoPunks have played a pivotal role in shaping the NFT space. Alongside Bitcoin, holding a CryptoPunk remains the ultimate flex on Crypto Twitter.

Fun Fact 1: Brian Armstrong, CEO of Coinbase, features a derivative of CryptoPunks as his profile picture.

Fun Fact 2: On the official CryptoPunks website, if you click "I Do Not Agree" on the disclaimer pop-up, which states that every trade is irreversible, you’ll be humorously redirected to an eBay page for Original Beanie Babies.