Recent fluctuations in Ethereum prices have significantly impacted the NFT market, resulting in substantial price drops for many popular collections.
Trends in NFT Price Decline
According to decentralized finance aggregator DefiLlama, top NFT collections saw double-digit price declines over the past week. Collections like Pudgy Penguins, Bored Ape Yacht Club (BAYC), and Doodles were hit the hardest. Pudgy Penguins, leading the trading volume for 24 hours and 7 days, experienced a 17.3% drop to a floor price of 10.32 Ether. BAYC fell by 14.7% to 9.59 Ether, while Doodles recorded one of the sharpest corrections, dropping 18.9% to 0.73 Ether.
Relative Stability of CryptoPunks
While many collections suffered significant losses, not all NFT projects were in retreat. CryptoPunks, remaining the top NFT collection by market cap, showed relative resilience, dropping only 1.35% over the week. Meanwhile, trading volumes remained high, with Pudgy Penguins leading the market at around 2,112 ETH (approximately $9.36 million) in trading volume.
Overall NFT Market Capitalization
The NFT market capitalization also saw a significant drop. According to NFT Price Floor, the overall NFT market cap fell nearly 5%, to $7.7 billion. On August 13, the NFT market cap peaked at $9.3 billion, up 40% from July's $6.6 billion, fueled by increased NFT activity following an ETH surge. However, as of August 18, the market cap dropped further to $8.1 billion.
In summary, the current decline in Ethereum prices has seriously impacted the NFT market, although some collections, like CryptoPunks, have shown relative resilience. The overall decrease in capitalization also highlights the market's instability regarding digital assets.
