The non-fungible token (NFT) market is showing early signs of stabilization following a steep sell-off that erased around $1.2 billion in value during Friday’s crypto crash.
Data shows that total NFT market capitalization fell from $6.2 billion to $5 billion, a 20% drop, as panic selling gripped digital collectibles across all major blockchains, reports Cointelegraph.
However, by Sunday, the sector partially rebounded to $5.5 billion, posting a 10% recovery as broader crypto markets stabilized. At the time of writing, the total NFT market cap sits near $5.4 billion, underscoring cautious optimism among investors. Analysts said the sell-off highlighted NFTs’ high sensitivity to overall crypto volatility, as falling liquidity and declining speculative demand dragged floor prices lower across the board.
Blue-chip collections still struggling after crash
Despite the rebound, many top NFT collections remain in the red over weekly and monthly timeframes. According to CoinGecko, Bored Ape Yacht Club (BAYC) fell 10.2% over the past week, while Pudgy Penguins tumbled 21.4%. Other high-value projects, such as Fidenza by Tyler Hobbs and Infinex Patrons, logged double-digit losses on the month.
CryptoPunks, the largest NFT collection by market capitalization, dropped 8% weekly and nearly 5% over the past 30 days. However, a few projects showed mild gains in the past 24 hours — including Hyperliquid’s Hypurr NFTs (+2.8%) and Mutant Ape Yacht Club (MAYC) (+1.5%) — suggesting some selective buyer activity has returned. Market watchers say collectors may now be focusing on high-quality assets at discounted prices rather than speculative flipping.
Crypto markets rebound as institutional inflows continue
Friday’s NFT crash coincided with a massive downturn in the broader crypto market, after U.S. President Donald Trump announced a 100% tariff on Chinese imports, prompting widespread liquidations. Bitcoin plunged to $102,000 on Binance’s perpetual futures before recovering to $111,000, while total crypto market capitalization dropped from $4.24 trillion to $3.78 trillion, a $460 billion loss over two days. Still, institutional sentiment remained resilient.
CoinShares reported that crypto ETPs attracted $3.17 billion in inflows last week despite the volatility, underscoring ongoing investor confidence in the sector’s fundamentals. By Monday, the total crypto market had recovered to about $4 trillion, helping NFTs and altcoins regain momentum. Analysts say that while risk appetite remains fragile, the quick rebound in both NFTs and Bitcoin suggests the sell-off was more of a short-term shakeout than a long-term reversal.
Recently we wrote that Japan’s Financial Services Agency (FSA) is advancing an ambitious plan to restructure the country’s cryptocurrency sector in 2025.
Source: https://tradersunion.com/
