NFT market capitalization saw a 12% decline to $8.1 billion as Ether’s price cooled off following a sharp rally.
Key Takeaways:
- NFT market cap collapsed from approximately $9.13 billion to $8.1 billion in under a week, a 12% drop as Ether’s price continues to weaken.
- CryptoPunks lost ~$300M (−12%), while Bored Ape Yacht Club (BAYC) tumbled nearly 20%; Pudgy Penguins rose to second-highest but still lost ~17%. Meanwhile, ETH declined around 9% from its recent peak of ~$4,700, currently trading near $4,269.30 with a 24-hour loss of ~6-7%
- The NFT ecosystem remains highly tied to Ethereum network dynamics, with investment behavior still reactive to crypto investment sentiment and asset momentum.
A recent report in CoinTelegraph reveals that the total NFT market cap has dropped from approximately $9.3 billion (Wednesday) to $8.1 billion by Monday, recording a roughly 12% decline which is valued at around $1.2 billion wipeout in under a week.
This downturn coincided with a 9% pullback in Ether prices. Ethereum had surged earlier to around $4,700, but has since retraced heavily, trading at approximately $4,269.30 as of this writing (11:00 AM UTC).
Major NFT Collections Take a Hit
Some of the most popular NFT collections have suffered along with the market cap collapse. NFT Price Floor’s latest data highlights NFT collection’s updated market cap as well as the minor changes in rankings.
While CryptoPunks managed to retain its spot as the leading project by market cap, it still lost roughly 12%, falling from $2.4 billion to around $2.1 billion. Bored Ape Yacht Club (BAYC) fared even worse, sliding nearly 20% from $602 million to $482.3 million, which pushed it down into third place in the rankings. Meanwhile, Pudgy Penguins briefly climbed into the second position but also declined by about 17%, shedding $100 million in value from $591 million to $491 million.
Photo: Top 10 NFTs by market capitalization.
Ethereum’s Retreat Deepens Pressure
As of writing (11:00 AM UTC), Ethereum is trading at $4,269.30, marking a decline nearly 7% over the past 24 hours, with an intraday range spanning $4,239.27 and $4,563.72, according to the latest market statistics of TradingView and CoinGecko.
Meanwhile, technical indicators reflect strain on the market. The Relative Strength Index (RSI) sits at just 18, which suggests that ETH is currently in heavily oversold territory, according to CryptoWaves. Short-term moving averages, including the 8-, 13-, and 21-period SMAs, are trending downward, signaling sustained bearish momentum. This suggests that without a recovery in ETH prices, NFT collections are unlikely to stabilize.
Analysts Warn of Prolonged Weakness
Market watchers emphasize that the steep erosion in NFT values underscores the sector’s dependency on Ethereum. Unless ETH can mount a significant recovery, NFT valuations are expected to remain under pressure. However, some analysts point to the growing interest of institutions in NFTs as a potential buffer. For instance, BTCS Inc. recently added NFTs to its corporate treasury, signaling that institutional adoption of crypto investments could help provide a floor for valuations in the mid-term.
What’s Next
The NFT market has shed $1.2 billion in value, showing their vulnerability in Ethereum’s significant recent price swings. With ETH trading near $4,270 after a sharp pullback, major NFT collections such as CryptoPunks, BAYC, and Pudgy Penguins are experiencing noticeable declines in value. Oversold conditions hint at a possible rebound, but without renewed momentum in Ethereum or stronger institutional participation in NFT crypto portfolios, recovery could remain elusive. Analysts warns traders and investors to remain cautious while keeping an eye on potential catalysts for rebounds.
Summary
A roughly $1.2B drawdown in NFT market cap to $8.1B tracked Ethereum’s retreat from about $4,700 to ~$4,269, underscoring the tight coupling between NFT valuations and ETH price action. Leading collections CryptoPunks, BAYC, and Pudgy Penguins all declined double-digits, reflecting beta to Ethereum and risk-off positioning. Short-term oversold readings (e.g., RSI near 18) could enable a reflexive bounce; however, without a firm ETH recovery or incremental institutional demand, stabilization may prove fragile.
