From Panic to Partial Recovery
The collapse was swift. On Friday, NFT valuations across all blockchains plummeted by roughly $1.2 billion as traders rushed to liquidate holdings amid a market-wide crash. By Saturday, total capitalization had fallen near $5 billion. But within 48 hours, prices began to rebound, with the market climbing back above $5.4 billion by Monday morning – a modest recovery that hinted at renewed demand.
The downturn underscored how closely NFTs remain tied to crypto market sentiment. When liquidity in Bitcoin and Ethereum vanishes, non-fungible assets tend to be the first casualty. Market makers and collectors pulled back simultaneously, leaving floor prices for even top‑tier collections exposed to steep markdowns.
Blue Chips Still Under Pressure
Despite a rebound in total capitalization, most leading projects remain underwater. Bored Ape Yacht Club (BAYC) and Pudgy Penguins have both suffered double‑digit weekly losses, while CryptoPunks – long considered the NFT market’s benchmark – has slipped about 8 %. Others like Fidenza and Infinex Patrons also logged notable declines.
A few collections, however, showed tentative strength. The Mutant Ape Yacht Club (MAYC) and Hyperliquid’s Hypurr series recorded small daily gains, suggesting that selective buying is returning to the space. Still, sentiment remains cautious, with traders avoiding aggressive bids after last week’s crash.
Fallout From the Crypto Market Turmoil
The chaos originated far beyond NFTs. Bitcoin futures briefly collapsed to $102,000 on Binance following President Donald Trump’s announcement of a 100 % tariff on Chinese imports, sparking panic in global risk markets. The fallout triggered over $20 billion in liquidations across crypto exchanges – one of the largest single‑day events since the FTX implosion.
The total crypto market shed nearly half a trillion dollars in value before rebounding to around $4 trillion by Monday. Yet despite the turmoil, institutional products held steady. CoinShares reported over $3 billion in inflows to crypto‑linked exchange‑traded products (ETPs) last week, signaling that professional investors may still view the crash as an opportunity rather than an exit point.
For NFTs, the episode serves as a reminder that recovery will depend on broader crypto stability. While the weekend’s bounce shows traders aren’t abandoning the sector, it also reveals just how quickly sentiment can turn when the market’s foundation shakes.