NFT Market Rebounds After $1.2B Sell-Off During Friday’s Crypto Crash

NFT Sector Faces $1.2 Billion Drawdown Amid Market Turmoil

The non-fungible token (NFT) market is showing early signs of recovery after enduring one of the sharpest downturns of 2025. On Friday, the sector shed roughly $1.2 billion in market capitalization, following a broader crypto market crash triggered by escalating trade tensions between the U.S. and China.

According to CoinGecko data, the total valuation of NFTs plunged from $6.2 billion to $5 billion between Friday and Saturday — a nearly 20% decline in less than 24 hours. However, by Sunday, the market regained some momentum, rebounding to $5.5 billion, a 10% recovery from the weekend low.

At the time of writing, the NFT sector’s market cap sits near $5.4 billion.

This volatility underscores the NFT market’s tight correlation with broader crypto price movements, as liquidity and speculative demand tend to dry up rapidly during high-stress events.

Blue-Chip Ethereum NFTs Remain Under Pressure

Despite the partial rebound, many top Ethereum-based NFT collections remain deep in the red on both weekly and monthly timeframes.

• Bored Ape Yacht Club (BAYC) is down 10.2% over the past week.

• Pudgy Penguins has slipped 21.4% in the same period.

• CryptoPunks, the leading collection by total market cap, has fallen 8% weekly and 5% over the past 30 days.

• Generative art projects like Fidenza by Tyler Hobbs and Infinex Patrons recorded double-digit monthly losses.

Meanwhile, select collections managed modest recoveries on short-term charts. Hyperliquid’s Hypurr NFTs rose 2.8% in 24 hours, and Mutant Ape Yacht Club (MAYC) gained 1.5%, suggesting that selective buying interest is beginning to return to the market.

Crypto Market Crash Sends Shockwaves Across Assets

Friday’s sell-off followed a major announcement from U.S. President Donald Trump, who imposed a 100% tariff on Chinese imports in response to Beijing’s planned export restrictions on rare earth minerals — materials critical to semiconductor and AI chip production.

The news triggered a chain reaction across global financial and crypto markets.

• Bitcoin (BTC) plunged to $102,000 on Binance’s perpetual futures pair.

• Total crypto market capitalization dropped from $4.24 trillion to $3.78 trillion, marking a $460 billion loss in just two days.

• Analysts described it as one of the largest liquidation events since the FTX collapse, with over $20 billion in leveraged positions wiped out.

By Monday, the broader crypto market began stabilizing around $4 trillion, signaling that panic selling may be subsiding.

Institutional Inflows Show Market Confidence

Despite the dramatic volatility, institutional sentiment appears surprisingly resilient.

Data from CoinShares shows that crypto exchange-traded products (ETPs) recorded $3.17 billion in inflows last week — even as the market absorbed Friday’s crash.

Analysts interpret these inflows as a vote of confidence in the long-term viability of digital assets, suggesting that large investors continue to accumulate exposure during periods of extreme volatility.

NFT Outlook: Selective Recovery Ahead

While the NFT market’s rebound remains fragile, the renewed inflows into crypto products and stabilization of Bitcoin and Ethereum could support gradual recovery in digital collectibles.

Market analysts expect trading volumes to remain subdued in the short term but highlight potential for a selective resurgence in blue-chip NFTs once market liquidity returns.

The NFT sector’s next test will likely come from whether institutional interest in tokenized assets — including art, music, and gaming — can sustain demand through continued macroeconomic turbulence.

Key Takeaways

• NFT market lost $1.2 billion amid Friday’s crypto sell-off.

• Sector recovered 10% by Sunday, reaching a $5.5 billion market cap.

• Top collections like BAYC, Pudgy Penguins, and CryptoPunks remain down.

• $20 billion in crypto liquidations triggered widespread volatility.

• Institutional inflows of $3.17 billion highlight investor resilience.

See all our insights: Bitcoin World News