The non-fungible token (NFT) market showed the first signs of recovery after a steep sell-off during Friday’s crypto market crash wiped out about $1.2 billion in market capitalization.
According to data from CoinGecko, the sector’s total valuation fell from $6.2 billion on Friday to $5 billion on Saturday. This wiped out nearly 20%, or about $1.2 billion, of market capitalization for digital collectibles across all blockchain networks.
The sector saw a rapid recovery as the crypto markets recovered. On Sunday, NFTs reached $5.5 billion, a 10% gain after the crash. At the time of writing, the total market capitalization was almost $5.4 billion.
The sell-off underscores the NFT sector’s sensitivity to broader crypto volatility. When the market fell sharply on Friday, NFT rock bottom prices followed suit as liquidity dried up and speculative demand fell.
Total NFT Market Cap Chart. Source: CoinGecko
Top NFT collections remain in the red
Despite the partial recovery, many top NFT collections have fallen over periods of seven to 30 days.
Top Ethereum-based projects, such as Bored Ape Yacht Club (BAYC) and Pudgy Penguins, are still down 10.2% and 21.4% respectively over the past week. Collections like Infinex Patrons and Tyler Hobbs’ Fidenza posted double-digit losses on the monthly charts.
CryptoPunks, the top NFT collection by market cap, is down 8% on the weekly charts and nearly 5% on the 30-day NFT performance chart.
While most of the top 10 NFTs have fallen, some collections showed a slight recovery on the 24-hour charts. This includes Hyperliquid’s Hypurr NFTs, which gained 2.8% in the past 24 hours, and the Mutant Ape Yacht Club (MAYC) collection, which gained 1.5%.
The slight recovery suggests that buyers may be selectively returning to the market despite the crash.
Seven-day NFT collection heatmap. Source: CoinGecko
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Crypto products are rebounding after Friday’s market crash
On Friday, Bitcoin plummeted to $102,000 in the Binance perpetual futures pair as US President Donald Trump announced a 100% tariff on China as the country tried to impose export restrictions on rare earth minerals.
When markets crashed, the industry saw liquidations of up to $20 billion, surpassing previous crypto market crashes including the FTX collapse.
Data from CoinGecko showed that the total crypto market capitalization fell from $4.24 trillion on Friday to $3.78 trillion on Sunday, a nearly $460 billion loss in two days.
The market rebounded to a $4 trillion valuation on Monday. At the time of writing, the crypto markets are valued at $3.94 trillion.
Despite the market crash, crypto investment products attracted billions in inflows.
On Monday, CoinShares reported that crypto exchange-traded products (ETPs) saw inflows of $3.17 billion last week, despite Friday’s flash crash. This highlights the resilience of the funds against market panic caused by the liquidations and sell-offs.
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