Recently, the NFT market has faced a considerable downturn with a loss of over $1.2 billion in total value.
Setback in the NFT Market
According to NFT Price Floor, the total valuation of major collections dropped to $8.1 billion on Monday, a 12% decline from $9.3 billion last week. This notable drop correlates with the slowdown in Ether (ETH) prices.
Impact of Ether on NFT Prices
The decline in Ether's price over the past week has been significant, with ETH down 9% from a peak of around $4,700 to $4,260. Since NFT prices are denominated in ETH, fluctuations in this asset directly impact valuations across collections. In just the last 24 hours, ETH shed another 4%, leading to similar declines in most of the top 10 NFT projects.
NFT Collections Positions Amid Changes
CryptoPunks, the largest NFT collection by market capitalization, lost around $300 million over the past week, with its market cap now standing at $2.1 billion, down 12% from $2.4 billion. The number of sales has also fallen by 28%. The Bored Ape Yacht Club (BAYC), which ranked second, dropped to third place with a nearly 20% decrease in market cap. Meanwhile, Pudgy Penguins have climbed to the second-highest market valuation despite losses.
The current situation in the NFT market highlights its volatility and close ties to Ether prices. The shifting dynamics among collections hint at potential changes in investor preferences.
