A %CryptoPunk non-fungible token (%NFT) has sold for a record price of $56.3 million U.S.
Analysts say the record sale is a bullish sign for the broader cryptocurrency market as NFT sales have traditionally been linked to positive sentiment towards digital assets.
NFTs are often referred to as digital art. They are a piece of artwork, or other item such as a baseball card, that use a unique digital identifier recorded on a blockchain to certify ownership and authenticity.
The latest CryptoPunk NFT sale topped the previous record price of $23.7 million U.S. by a substantial amount.
Punk 1563, depicting a pixelated woman with dark hair and blue eyes, was sold for 24,000 %Ethereum (CRYPTO: $ETH), which was worth $56.3 million U.S. based on the current price of Ether.
A flash loan was used to make the Punk 1563 sale, blockchain data shows.
The seller listed their CryptoPunk NFT for 24,000 Ethereum, while a buyer took out a flash loan for the same amount from decentralized finance protocol Balancer.
The borrowed Ethereum was transferred to the seller’s wallet, who promptly returned the amount to Balancer.
Flash loans are unsecured, non-collateralized loans in which users borrow funds and return them in a quick, seamless transaction.
There was an NFT craze in 2021 during the last cryptocurrency bull run, but it petered out during a downturn in the market that occurred in 2022, known as a “crypto winter.”