The non-fungible token (NFT) market has taken a sharp downturn, shedding more than $1.2 billion in value in less than a week as the momentum behind Ethereum’s (ETH) rally fades.
Data shows that the total valuation of NFT collections dropped from $9.3 billion last Wednesday to $8.1 billion on Monday – a 12% decline. This slide mirrors the recent dip in ETH, which fell from its peak near $4,700 to around $4,260 at the time of writing.
📉 Ethereum Pulls NFT Market Down
Since most NFTs are minted and traded on Ethereum, their market values are highly correlated with ETH price action. Over the past 24 hours, ETH lost another 4%, pulling down the top NFT collections as well.
🔹 CryptoPunks – still the largest collection by market cap, lost around $300 million in value, falling to $2.1 billion. Trading volume dropped 34% to $12.7 million, with sales declining 28%.
🔹 Bored Ape Yacht Club (BAYC) – once the second-largest collection, fell to third place with a valuation of $482.3 million, nearly a 20% drop from last week’s $602 million.
🔹 Pudgy Penguins – the week’s surprise winner. Despite losing $100 million in value, bringing the collection down to $491 million, it surpassed BAYC to take the second spot.
🐧 Penguins Overtake Apes
Highlighting this shift, publicly traded company BTCS Inc. recently added three Pudgy Penguins NFTs to its corporate treasury. This move signals that companies are starting to recognize blue-chip NFTs as legitimate digital assets for treasury diversification.
The NFT sector has entered a turbulent phase, reflecting its strong dependency on Ethereum’s price. Yet, even as overall capitalization drops, some projects continue to prove that strong branding can carry them through market downturns.
#nft , #Ethereum , #CryptoMarket , #cryptotrading , #Web3
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