NFT Market Takes a $1.2 Billion Hit as Ether Stumbles
The NFT market just had a rough week. According to data from NFT Price Floor, the total value of NFT collections dropped to $8.1 billion on Monday—down 12% from $9.3 billion the previous Wednesday. That’s a loss of over $1.2 billion in less than seven days.
It’s no coincidence that Ether (ETH), the cryptocurrency most NFTs are built on, also took a dive. ETH fell about 9% from its high of $4,700 last Wednesday, hovering around $4,260 at the time of reporting. When ETH stumbles, NFTs often follow—and this time was no exception.
Top Collections Feel the Pain
CryptoPunks, still the most valuable NFT collection by market cap, lost around $300 million in valuation. Its worth dropped to $2.1 billion, down from $2.4 billion just days earlier. Sales volume for the collection also took a hit, falling 34% over the past week with just 51 total sales.
Bored Ape Yacht Club (BAYC) didn’t fare much better. Once the second-largest NFT collection, it slipped to third place with its market cap shrinking nearly 20%—from $602 million to $482.3 million.
But here’s an interesting twist: Pudgy Penguins actually moved up to second place, even though its value dropped by about $100 million. The collection now sits at $491 million, down from $591 million last week.
Why the Sudden Drop?
NFTs and ETH have always been closely tied. Since most NFTs are bought and sold in Ether, when ETH loses steam, so does the NFT market. Over the past 24 hours alone, ETH dipped another 4%, and most of the top 10 NFT collections followed suit.
There might be another factor at play, though. Some investors are starting to see certain NFTs—like Pudgy Penguins—as more than just digital art. Last week, blockchain company BTCS Inc. added three Pudgy Penguins to its corporate treasury, treating them like any other asset. That kind of move could signal a shift in how businesses view high-value NFTs.
Still, for now, the market’s looking shaky. Whether this is just a short-term dip or the start of something bigger isn’t entirely clear. But one thing’s certain: when ETH catches a cold, the NFT market sneezes.
