NFT market bounces back after $1.2B in Friday’s crypto crash
The Fungible Token (NFT) market showed the first signs of recovery on Friday after losing $1.2 billion in market capitalization during the crypto market crash.
According to CoinGecko, the sector's total valuation dropped from $6.2 billion on Friday to $5 billion on Saturday. This equates to a loss of 20%, or about $1.2 billion, in market capitalization for digital aggregators across all blockchain networks.
The sector experienced a rapid recovery as crypto markets rebounded. NFTs hit $5.5 billion on Sunday, marking a 10% gain since the crash. At the time of writing, the total market value was about $5.4 billion.
The selloff reflects the sensitivity of the NFT sector to broader crypto volatility. The market fell sharply on Friday as NFT floor prices dried up as liquidity dried up and speculative demand waned.
High concentrations of NFT remain in red
Despite the partial recovery, many NFT stocks fell over seven and 30 days.
Top Ethereum-based projects such as Bored Up Yacht Club (BAYC) and Pudgy Penguins were down 10.2% and 21.4% respectively last week. Collections such as Infinex Patrons and Fidenza by Tyler Hobbs posted double-digit losses on the monthly charts.
CryptoPunks, the largest collection of NFTs by market capitalization, is up 8% on the weekly charts and nearly 5% on the 30-day NFT performance chart.
While most of the top 10 NFTs declined, some sets showed a slight recovery on the 24-hour charts. This includes Hypurliquid's Hypurr NFTs, which posted a 2.8% gain over the past 24 hours, and Mutant Ape Yacht Club's (MAYC) portfolio, which posted a 1.5% gain.
The slight rebound suggests that, despite the risk, buyers may be selectively returning to the market.
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Crypto commodities recover after Friday's market crash
Bitcoin fell to $102,000 on the Binance perpetual futures pair on Friday after US President Donald Trump announced 100% tariffs on China as the country moves to impose export restrictions on rare earth minerals.
As the markets crashed, the sector saw up to $20 billion in outflows, more than any previous crypto market crash, including the FTX crash.
According to CoinGecko data, the total crypto market capitalization fell from $4.24 trillion to $3.78 trillion on Friday, which is close to $460 billion in two days.
The market recovered on Monday at a value of $4 trillion. At the time of writing, the crypto market is valued at $3.94 trillion.
Despite the market crash, crypto investment products have attracted billions in revenue.
On Monday, CoinShares reported that crypto exchange-traded products (ETPs) saw $3.17 billion in revenue despite Friday's flash crash last week. This highlights the currency's resilience to market shocks caused by liquidity and selling.
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