Ethereum News Today: NFT Market Slumps as Ethereum Retreats and Blue-Chip Collections Lose 14%+ in Week

The NFT market is experiencing a sharp correction, with leading collections suffering double-digit floor price declines amid Ethereum’s retreat from its all-time high of $4,957. The top NFT projects, including Bored Ape Yacht Club, Pudgy Penguins, and Moonbirds, have seen significant value erosion over the past week. Data from DeFiLlama and CryptoSlam indicate that the top 10 blue-chip collections have collectively faced heavy volatility, with many experiencing weekly losses exceeding 14% [1].

The total NFT market cap has fallen to $6.46 billion from a peak of $8 billion in late August, reflecting a 4.71% decline in the last 24 hours alone. Despite the downturn, daily NFT sales reached $19.8 million, with Ethereum dominating the activity at $12.88 million in sales. However, this figure includes $3.7 million in wash trades, suggesting that much of the volume may not represent genuine market demand [1].

Bored Ape Yacht Club (BAYC), one of the most iconic NFT collections, has seen its floor price drop 14.41% over the past week, settling at 9.5 ETH. Mutant Ape Yacht Club (MAYC), a spin-off of BAYC, fell 16.57% in seven days. Meanwhile, Pudgy Penguins, which has maintained some momentum through product launches, recorded a 15.75% weekly drop, despite a small 2.78% one-day gain [1].

Other notable performers include CryptoPunks, which saw a 1.39% weekly decline and a 2.61% one-day drop, and Moonbirds, which fell 9.29% over the week. Smaller collections like Lil Pudgys and Azuki have also faced double-digit weekly losses, though both posted modest daily gains. A rare bright spot was Quills Adventure, which rose 6.01% in 24 hours and surged 72.39% in seven days from a much lower floor price [1].

Ethereum’s price action has been a key driver of the NFT market’s recent turmoil. The blockchain’s native token, which underpins the vast majority of NFT transactions, has pulled back to around $4,400 from its recent peak. Analysts have noted that Ethereum is currently testing support between $3,900 and $4,000, with a successful defense of this range seen as crucial for a potential rebound toward $6,000–$8,000. A breakdown below $3,900, however, could lead to further declines toward $3,500 [1].

The correlation between Ethereum’s performance and NFT valuations remains strong, with many NFTs priced directly in ETH or USD. This creates a direct link between the token’s price and the perceived value of NFT assets. Investors who bought in during the peak of the bull run are now facing substantial unrealized losses, raising questions about the sustainability of NFT valuations in the current market environment [1].

The current correction reflects broader market psychology, with speculative demand cooling as Ethereum’s growth trajectory slows. The NFT market, which has largely been driven by hype and early adopters, is now facing a reality check. This shift could lead to a more measured investment approach, with a focus on long-term utility and use cases such as digital ownership and decentralized identity [1].

While the short-term outlook for NFT prices appears bearish, the underlying technology continues to evolve. Ethereum’s ongoing upgrades, aimed at improving scalability and efficiency, could provide a more favorable environment for NFT growth in the long run. Investors focused on the broader ecosystem may view the current downturn as an opportunity to reassess their positions and rebalance their strategies [1].

Sources:

[1] Latest most valuable asset News and Social Media Feed (https://cryptorank.io/news/most-valuable-asset)