Blue-chip non-fungible token (NFT) collections experienced significant declines over the past week, closely following the retreat of Ether (ETH) from its all-time highs.
Data from decentralized finance aggregator DefiLlama highlighted that leading NFT projects encountered substantial drops in their floor prices, with some collections seeing double-digit percentage losses over the past seven days. Notably, blue-chip NFT collections like Pudgy Penguins, Bored Ape Yacht Club (BAYC), and Doodles faced some of the steepest declines.
Pudgy Penguins, which topped the charts in terms of both 24-hour and 7-day trading volumes, faced a 17.3% decrease, bringing its floor price down to 10.32 Ether (ETH). Similarly, BAYC’s valuation fell by 14.7%, reaching a floor price of 9.59 ETH. Doodles recorded one of the most significant corrections, with an 18.9% drop to 0.73 ETH. Other notable collections, including Moonbirds and Lil Pudgys, saw their floor prices decrease by 10.5% and 14.6%, respectively.
The decline in NFT floor prices was precipitated by a sharp retracement in ETH’s value after the cryptocurrency touched new all-time highs. According to CoinGecko data, ETH reached an unprecedented high of $4,946 on Monday. However, it dropped 12% to $4,342 on Tuesday before staging a partial recovery. At the time of writing, ETH was trading at approximately $4,433.
CryptoPunks Remain Resilient Amid Market Turmoil
Despite the widespread downturn affecting many NFT collections, not all projects were equally impacted. CryptoPunks, which continues to dominate the NFT market by market capitalization, demonstrated resilience, experiencing only a modest 1.35% decline over the week.
Although the floor prices of top collections fell, trading volumes remained robust. Throughout the week, Pudgy Penguins led the market with an impressive trading volume of approximately 2,112 ETH, equivalent to about $9.36 million. Moonbirds followed with 1,979 ETH, or $8.77 million in trading volume.
CryptoPunks also reported strong activity, with a trading volume of 1,879 ETH, translating to about $8.33 million, while BAYC registered 809 ETH, approximately $3.59 million in trades.
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NFT Market Capitalization Sees a Decline
While blue-chip NFTs faced significant losses, the broader NFT market also contracted, experiencing a nearly 5% drop to a total market capitalization of $7.7 billion, as per NFT Price Floor data.
Previously, on August 13, NFT Price Floor data indicated the overall NFT market capitalization peaked at $9.3 billion, marking a 40% increase from July’s $6.6 billion. This surge was largely driven by heightened NFT activity in response to an ETH price increase.
However, by August 18, the NFT market cap had declined further to $8.1 billion, effectively wiping $1.2 billion from the valuations of digital collectibles.
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For more details, refer to the original source: Cointelegraph
