NFT market loses nearly half its value in one month, dropping to $3.5 billion

The NFT market cap has crashed 46% over the past 30 days, plummeting from $6.6 billion on October 5 to $3.5 billion as of November 5, even as trading volumes rose 13% during the same period.

Blue-chip collections bore the brunt of the decline, with CryptoPunks floor prices falling from $214,000 to $117,000 and Bored Ape Yacht Club seeing similar cuts, according to data from CoinGecko and CryptoSlam.

The divergence between rising activity and falling valuations suggests investors are exiting positions rather than accumulating, analysts say.

NFT market cap plunge affects major blockchains and collections

CoinGecko and CryptoSlam data reveal that while the NFT market cap has fallen dramatically, trading volumes rose by 13% in October to approximately $631 million.

Networks such as Ethereum saw a 25.5% decline in market cap, whereas BNB Chain and Polygon experienced the steepest drops of 82% and 86%, respectively.

“The NFT market cap strength is fading, and volatility remains a major concern for investors,” explained a blockchain financial analyst.

Blue-chip nft floor prices reflect market fragility

Even top-tier NFT collections have been hit hard. CryptoPunks’ trading volume fell 40%, with floor prices dropping from $214,000 to $117,000 in a month. Moonbirds experienced a 63% volume decrease and saw their floor prices halve, indicating a weakening NFT market cap foundation.

BAYC and Pudgy Penguins reported higher trading volumes but saw their floor prices almost cut in half, signaling discrepancies between volume and market cap valuations.

“The NFT market cap shows instability as speculative liquidity affects prices,” noted an industry expert.

NFT platforms pivot strategies amid market contraction

As the market cap declines, key players adapt. OpenSea, with over 522,000 traders recently, is expanding into a universal on-chain trading hub but insists it is not abandoning NFTs. Animoca Brands’ plan to list on Nasdaq marks growing institutional interest despite shrinking secondary NFT market liquidity.

“NFT market cap drop doesn’t deter our growth plans,” stated an OpenSea spokesperson.

The recent steep drop in NFT marketcap amidst rising sales volumes underscores ongoing uncertainty yet also hints at future innovation within the market.