The NFT market cap dropped by over $1.2 billion in the last week. This 12% decline was driven by falling Ethereum prices.
NFT Capitalization Decline
The NFT market cap now stands at $8.1 billion following a 9% drop in Ethereum, which fell from $4,700 to approximately $4,260. This decrease in ETH negatively impacted the NFT market, as most tokens are created and traded on this blockchain. As a result, leading collections like Crypto Punks and Bored Apes also suffered in value.
Market Shuffle: Penguins Overtake Apes
In a surprising twist, Pudgy Penguins have overtaken Bored Apes in market cap rankings. Despite a 17% drop in value to $491 million, it was enough to leap ahead of the Apes, which plunged nearly 20% to $482 million. This shuffle highlights shifting investor sentiment within the NFT market.
Institutional Moves Towards NFTs
While prices declined, the sector received encouraging signals. BTCS Inc., a publicly traded blockchain company, announced the addition of three Pudgy Penguins to its digital asset treasury. This marks a step in corporate adoption of NFTs and suggests that blue-chip collections may continue to gain credibility among institutional investors.
The near-term future of NFTs heavily depends on Ethereum's price movements. If ETH regains bullish momentum, NFT valuations may stabilize, while further declines could result in additional valuation losses.
