NFTs Take a Hit but Show Resilience Amid Broader Crypto Turmoil
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The NFT sector is bouncing back after a sharp drop erased roughly $1.2 billion in market value last Friday.
Market data indicates the overall capitalization fell from $6.2 billion to $5 billion during the sell-off but recovered to about $5.4 billion by Sunday. The rebound reflects how closely NFT prices track broader crypto market trends.
The crash followed heightened volatility in digital assets, with NFT floor prices dropping as liquidity dried up and speculative demand waned. While some recovery is underway, top collections remain under pressure.
Ethereum-based projects such as Bored Ape Yacht Club and Pudgy Penguins saw weekly losses of 10% and 21%, respectively. CryptoPunks also recorded declines, down nearly 5% over the past month. A few projects, however, including Hyperliquid’s Hypurr and Mutant Ape Yacht Club, posted modest 24-hour gains, hinting at selective buying returning to the market.
The broader crypto ecosystem also faced turbulence. Bitcoin briefly dipped to $102,000 amid news of U.S.-China trade tensions and rare earth export restrictions, triggering roughly $20 billion in liquidations. Total crypto market capitalization fell from $4.24 trillion to $3.78 trillion over the weekend before recovering toward $4 trillion on Monday.
Despite these fluctuations, investor interest remains robust. Crypto exchange-traded products pulled in $3.17 billion in inflows last week, underscoring resilience in institutional and retail participation even during periods of market stress.
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