Yuga Labs has transferred CryptoPunks IP to the Infinite Node Foundation. With trading volume up 170% to $2.8 million in 24 hours, is this the end of NFTs or a bold move to preserve digital art?
CryptoPunks are among the most valuable NFTs. During the 2020–2021 bull market, driven mainly by DeFi and NFT activity, each of the 10,000 CryptoPunks was highly coveted. Those “fortunate” enough to purchase them paid millions of dollars in ETH.
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Yuga Labs Hands Over CryptoPunks To NODE
In August 2021, the collection generated $691 million in monthly sales volume. As NFT fever surged, one collector spent $23.7 million to acquire CryptoPunk #5822 in February 2022, making it the fourth most expensive NFT ever.
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For crypto and NFT enthusiasts, the 2021 boom was euphoric, but such valuation spikes may not return for years. Recognizing that NFT trading volume might not recover to billions monthly, Yuga Labs, the team behind Bored Ape Yacht Club (BAYC), announced on May 12, 2025, the transfer of full intellectual property (IP) rights for CryptoPunks to the Infinite Node Foundation (NODE).
Rumors in January suggested the deal was imminent, pushing the floor price higher. Despite confidence that the agreement would be finalized within a couple of weeks, it took months to materialize. During this time, some of the best Solana meme coins, including TRUMP, shot higher, dominating crypto headlines.
I’m now confident enough to share it with y’all after hearing it from several sources close to the matter:
Yuga Labs might be in the process of selling the CryptoPunks IP.
They bought the IP + more than 400 CryptoPunk NFTs from Larva Labs back in March 2022.
Who is the buyer?…
— wale.moca
(@waleswoosh) January 14, 2025
The financial details of the agreement remain private and have not been divulged by NODE, a California-based nonprofit dedicated to preserving digital art, or by Yuga Labs. Still, the decision has ignited debate over whether transferring IP rights to NODE effectively buries CryptoPunks or serves the collection’s long-term interests.
Yuga Labs is transferring CryptoPunks’ IP to NODE amid a struggling NFT market, with trading volume down over 90% from 2021 peaks. Following the announcement, CryptoPunks’ trading volume surged 170% to $2.8 million in 24 hours, with 21 sales transactions recorded.
The average sale price in May 2025 is $121,605, with total sales reaching over $9.7 million. In August 2021, the collection posted $691 million in total sales, but volumes steadily declined, hitting a low of $7.7 million in monthly average sales in September 2023. The fall mirrors the general performance in crypto, where even some of the best cryptos to buy contracted.
What’s Next?
Is Yuga Labs divesting as NFTs face their demise as a speculative asset class? If so, the move is quite telling, as Yuga acquired CryptoPunks from Larva Labs in 2022. Less than three years later, they are transferring the collection to NODE.
As part of the agreement, NODE will debut a curated CryptoPunks exhibition at its permanent space in Palo Alto, helping educate the masses. The exhibition will feature a live Ethereum node to ensure on-chain accessibility.
“CryptoPunks sparked a cultural movement that blended code, community, and commerce,” said Micky Malka, Chair of the Node Foundation. “By pairing museum-grade conservation with an evergreen endowment, we intend to future-proof this landmark work and make it easier than ever for scholars, curators, and collectors to engage with it.”
If Yuga Labs is shifting focus to BAYC, this isn’t their first IP divestiture. Earlier in 2025, they sold the Meebits IP before announcing a company restructure and lay-offs.
1/ The @MeebitCompany, a @1confirmation-backed venture, is excited to announce its acquisition of the Meebits from @yugalabs and the launch of a new chapter for Larva Labs’ third and most ambitious NFT project. We look forward to preserving the rich history of this collection… pic.twitter.com/0HLYyEJ9ZR
— Meebits (@MeebitsNFTs) February 14, 2025
Whether they are lightening their burden remains unclear. It should be noted that Yuga Labs was sued by the U.S. Securities and Exchange Commission (SEC) last year. However, the case was closed in March 2025. Even though this cleared legal hurdles, it didn’t stop skepticism.
Some think the acquisition by NODE is the right move since Punks were “never meant to sit on a shelf next to Apes.”
Yuga passing on the CryptoPunks IP to @nodefnd is the move.
It’s not that @yugalabs did anything wrong but Punks were never meant to sit on a shelf next to Apes.
This IP deserves its own spotlight, its own tempo, its own team fully committed to the culture.
With Matt & John… pic.twitter.com/4ci3Z9AVzj
— Djani (@DjaniWhaleSkul) May 13, 2025
In his view, the agreement is more like a “realignment”, not a sale.
Meanwhile, others think the Punk community will get much more from NODE, including the possibility of revamping the budding process.
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CryptoPunks IP Transfer to NODE: Is the NFT Market Dead?
- CryptoPunks NFT collection generated $680 million in August 2021
- After acquiring CryptoPunks in 2022, Yuga Labs transfers its IP to NODE to focus on BAYC and Otherside metaverse
- CryptoPunks’ trading volume soared 170% to $2.8M in 24 hours after the announcement
- The nonprofit Infinite Node Foundation will debut a CryptoPunks exhibition in Palo Alto
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