The non-fungible token (NFT) market is showing early signs of recovery after a sharp sell-off erased roughly $1.2 billion in value during Friday’s crypto market crash.
Data from CoinGecko indicates that the sector’s total market capitalization fell from $6.2 billion on Friday to $5 billion on Saturday, representing nearly a 20% decline across all blockchain-based digital collectibles.
As broader crypto markets began to rebound, the NFT sector quickly followed suit. By Sunday, total market value had climbed back to $5.5 billion, a 10% gain post-crash, and at the time of writing, the market stood near $5.4 billion.
The downturn underscores the NFT market’s vulnerability to wider crypto volatility. On Friday, as prices across the crypto space plummeted, NFT floor prices also dropped sharply due to reduced liquidity and a decline in speculative demand.
Despite the partial rebound, many leading NFT collections continue to show losses over the past week and month.
Ethereum-based projects like Bored Ape Yacht Club (BAYC) and Pudgy Penguins remain down 10.2% and 21.4%, respectively, over the past seven days. Monthly charts also show double-digit declines for collections such as Infinex Patrons and Fidenza by Tyler Hobbs.
CryptoPunks, the largest NFT collection by market capitalization, has fallen 8% over the past week and nearly 5% over the last 30 days.
However, some collections are showing modest gains in the short term. Hyperliquid’s Hypurr NFTs rose 2.8% in the past 24 hours, while the Mutant Ape Yacht Club (MAYC) saw a 1.5% increase.
These slight recoveries suggest that, despite the broader market downturn, buyers may be cautiously returning to certain NFTs.
Crypto Markets Rebound After Friday’s Sharp Sell-Off
On Friday, Bitcoin briefly dropped to $102,000 on the Binance perpetual futures pair following US President Donald Trump’s announcement of a 100% tariff on China, amid Beijing’s move to impose export restrictions on rare earth minerals.
The sudden market turmoil triggered liquidations totaling up to $20 billion, surpassing losses seen in previous crypto crashes, including the FTX collapse.
According to CoinGecko, total crypto market capitalization fell from $4.24 trillion on Friday to $3.78 trillion by Sunday, erasing nearly $460 billion in just two days.
Markets showed a swift recovery, rising to $4 trillion on Monday, and at the time of writing, the total crypto market stands at approximately $3.94 trillion.
Despite the sharp downturn, crypto investment products continued to attract significant inflows. CoinShares reported that crypto exchange-traded products (ETPs) drew $3.17 billion in inflows last week, underscoring investor confidence and the sector’s resilience in the face of panic-driven sell-offs.
