The non-fungible token (NFT) market has begun to show early signs of recovery following a significant sell-off that resulted in a loss of approximately $1.2 billion in market capitalization during Friday’s crypto market crash.
According to data from CoinGecko, the sector’s overall value declined from $6.2 billion on Friday to $5 billion on Saturday. This represented a nearly 20% drop, equating to around $1.2 billion in market cap for digital collectibles across various blockchain networks.
The sector saw a swift rebound as crypto markets stabilized. By Sunday, NFTs had risen to $5.5 billion, marking a 10% recovery from the crash. As of now, the total market cap stands at nearly $5.4 billion.
This sell-off emphasizes the NFT sector’s vulnerability to broader crypto market fluctuations. Following the sharp decline on Friday, NFT floor prices dipped as liquidity decreased and speculative interest waned.
Leading NFT collections remain down
Despite the partial recovery, many leading NFT collections remain down over the past seven and thirty days.
Top Ethereum-based projects like Bored Ape Yacht Club (BAYC) and Pudgy Penguins have experienced declines of 10.2% and 21.4%, respectively, in the last week. Other collections, such as Infinex Patrons and Fidenza by Tyler Hobbs, have also recorded losses in the double digits on monthly charts.
CryptoPunks, the leading NFT collection by market capitalization, is down 8% on weekly charts and nearly 5% on the 30-day NFT performance metric.
While most of the top 10 NFTs remain in the red, a few collections have shown slight gains on the 24-hour charts. Notably, Hyperliquid’s Hypurr NFTs recorded a 2.8% increase, while the Mutant Ape Yacht Club (MAYC) collection saw a 1.5% uptick.
This modest recovery signals that, despite the crash, some buyers may be cautiously returning to the market.
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Crypto products bounces back post-Friday market crash
On Friday, Bitcoin fell to $102,000 in the Binance perpetual futures pair after US President Donald Trump announced a 100% tariff on China amid attempts to impose export restrictions on rare earth minerals.
During the market downturn, the sector faced liquidations of up to $20 billion, exceeding previous downturns, including the FTX collapse.
Data from CoinGecko indicated that the overall crypto market capitalization fell from $4.24 trillion on Friday to $3.78 trillion by Sunday, marking a nearly $460 billion decline in just two days.
However, the market rebounded to a valuation of $4 trillion by Monday. As of now, crypto markets are valued at around $3.94 trillion.
Despite the downturn, crypto investment vehicles attracted billions in inflows.
On Monday, CoinShares reported that crypto exchange-traded products (ETPs) garnered $3.17 billion in inflows last week, showcasing their resilience against market panic prompted by the liquidations and sell-off.
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