The non-fungible token (NFT) market has lost more than $1.2 billion in value in under a week as Ether’s (ETH) recent rally showed signs of slowing, according to sector data.
NFT Price Floor reports showed total NFT market capitalization dropped to $8.1 billion on Monday, a 12% decline from Wednesday’s $9.3 billion peak, which had surged 40% since July, reflecting ongoing volatility in the space.
The market slump coincided with a 9% dip in Ether prices. Cointelegraph data showed ETH trading at $4,260 at the time of reporting, down from a recent high near $4,700 on Wednesday. Since most NFTs are minted on the Ethereum blockchain and priced in ETH, changes in the cryptocurrency’s value have an immediate impact on NFT valuations.
Leading collections mirrored the downturn. CryptoPunks, still the largest NFT collection by market capitalization, fell by roughly $300 million, from $2.4 billion on Wednesday to $2.1 billion. Weekly sales also declined, with CryptoSlam reporting $12.7 million in volume—a 34% drop—and 51 total transactions, down 28% from the previous week.
The Bored Ape Yacht Club (BAYC) slipped from second to third place in market rankings, falling nearly 20% from $602 million to $482.3 million. The decline highlights a broader trend of volatility among top-tier NFT collections as investor sentiment reacts to Ether’s movements. NFT market is closely tied to Ether’s price trajectory, suggesting that future bullish or bearish trends in ETH will directly influence NFT valuations.
Despite recent losses, NFT activity remains robust. CryptoSlam data shows NFT sales surpassed $574 million in July, marking the second-highest monthly volume this year, up 47.6% from June’s $388.9 million, though still below January’s peak of $678.9 million. The number of unique buyers declined 17 percent to 713,085, while unique sellers increased 9 percent to 405,505, suggesting a market shift toward fewer but larger purchases.
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