The non-fungible token (NFT) market has indicated early signs of recovery following a significant sell-off that erased approximately $1.2 billion in market capitalization during the recent crypto downturn on Friday.
According to data from CoinGecko, the total valuation of the sector dropped from $6.2 billion on Friday to $5 billion on Saturday. This represented a nearly 20% decline, equivalent to about $1.2 billion, in the market capitalization for digital collectibles across all blockchain platforms.
This sell-off underscores the NFT sector’s vulnerability to broader crypto volatility. With the sharp market decline on Friday, NFT floor prices also fell as liquidity diminished and speculative demand decreased.
Leading NFT collections remain in the negative
Despite the partial recovery, many leading NFT collections have declined across seven- and 30-day periods.
Top projects based on Ethereum, including the Bored Ape Yacht Club (BAYC) and Pudgy Penguins, are still down 10.2% and 21.4%, respectively, over the past week. Collections like Infinex Patrons and Fidenza by Tyler Hobbs have reported double-digit decreases on their monthly charts.
CryptoPunks, the leading NFT collection by market capitalization, has seen an 8% drop on the weekly charts and almost a 5% decline on the 30-day NFT performance chart.
Although most of the top 10 NFTs are down, a few collections have shown slight recoveries in the last 24 hours. This includes Hyperliquid’s Hypurr NFTs, which gained 2.8%, and the Mutant Ape Yacht Club (MAYC), which saw a 1.5% increase.
This modest recovery suggests that buyers may be cautiously returning to the market despite the crash.
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Crypto products rebound after Friday’s market crash
On Friday, Bitcoin plummeted to $102,000 in the Binance perpetual futures pair as US President Donald Trump announced a 100% tariff on China amid the country’s attempts to impose export restrictions on rare earth minerals.
As markets collapsed, the sector experienced liquidations totaling up to $20 billion, surpassing previous crypto market crashes, including the FTX collapse.
CoinGecko data indicated that the total crypto market capitalization slid from $4.24 trillion on Friday to $3.78 trillion on Sunday, a nearly $460 billion loss in just two days.
The market rebounded to a valuation of $4 trillion by Monday. At the time of writing, crypto markets are valued at $3.94 trillion.
Despite the market downturn, crypto investment products attracted significant inflows.
On Monday, CoinShares reported that crypto exchange-traded products (ETPs) experienced $3.17 billion in inflows last week, in spite of Friday’s flash crash. This underscores the resilience of these funds amid the market panic triggered by the liquidations and sell-off.
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