The non-fungible token (NFT) market showed early signs of recovery after a steep sell-off wiped out about $1.2 billion in market capitalization during the crypto market crash on Friday.
According to CoinGecko data, the sector’s overall valuation fell from $6.2 billion on Friday to $5 billion on Saturday. This erased almost 20%, or about $1.2 billion, in market capitalization for digital collectibles across all blockchain networks.
The sector experienced a rapid recovery as crypto markets rebounded. On Sunday, NFTs reached $5.5 billion, marking a 10% gain following the crash. At the time of writing, the overall market cap was almost $5.4 billion.
The sell-off highlights the NFT sector’s sensitivity to wider crypto volatility. With the market dropping sharply on Friday, NFT floor prices followed suit as liquidity dried up and speculative demand went down.
Total NFT market capitalization chart. Source: CoinGecko
Top NFT collections remain in the red
Despite the partial recovery, many top NFT collections are down over seven- and 30-day periods.
Top Ethereum-based projects, such as the 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 Fidenza by Tyler Hobbs recorded double-digit losses on the monthly charts.
CryptoPunks, the top NFT collection by market capitalization, is down by 8% on the weekly charts and nearly 5% on the 30-day NFT performance chart.
While most of the top 10 NFTs are down, some collections showed a slight recovery on the 24-hour charts. This includes Hyperliquid’s Hypurr NFTs, which posted a 2.8% gain in the last 24 hours, and the Mutant Ape Yacht Club (MAYC) collection, which posted a 1.5% gain.
The slight recovery hints that, despite the crash, buyers may be selectively returning to the market.
Seven-day NFT collection heatmap. Source: CoinGecko
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Crypto products recover after Friday market crash
On Friday,…
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