Blue Chip NFTs Crash as ETH Pullback Wipes Out Billions in Market Value

Blue Chip NFTs suffered a brutal week as Ethereum’s retreat from record highs triggered double-digit losses across top collections.

While Pudgy Penguins, Bored Ape Yacht Club (BAYC), and Doodles led the slide, CryptoPunks showed surprising resilience.

According to data from DefiLlama, floor prices for the leading NFT projects have fallen sharply over the past seven days. Pudgy Penguins, the market leader by trading volume, shed 17.3% to 10.32 ETH. BAYC followed with a 14.7% drop to 9.59 ETH, while Doodles suffered one of the steepest corrections, plunging 18.9% to 0.73 ETH. Other well-known collections such as Moonbirds and Lil Pudgys also took heavy hits, falling 10.5% and 14.6%, respectively.

The sharp decline coincided with Ethereum’s retracement after hitting a new all-time high. On Monday, ETH surged to $4,946 before dropping 12% to $4,342 on Tuesday, according to CoinGecko data. At press time, ETH was trading around $4,433.

CryptoPunks Hold Ground

While most blue chip NFTs were in free fall, CryptoPunks managed to hold their ground, losing only 1.35% for the week. As the largest NFT collection by market cap, CryptoPunks’ relative stability has fueled debate over whether the project is becoming a true “safe haven” among NFTs during volatile market swings.

Trading Volumes Remain Elevated

Despite steep floor price declines, trading activity has remained strong. Pudgy Penguins recorded roughly 2,112 ETH ($9.36M) in weekly trading volume, followed by Moonbirds with 1,979 ETH ($8.77M). CryptoPunks also maintained momentum with 1,879 ETH ($8.33M) traded, while BAYC saw 809 ETH ($3.59M).

This suggests that while valuations are dropping, liquidity in the NFT market is still active — a sign that traders are rotating positions rather than abandoning the sector entirely.

NFT Market Cap Sheds $1.6B

The broader NFT market wasn’t spared either. According to NFT Price Floor, overall NFT market capitalization dropped nearly 5% this week to $7.7 billion. That’s a steep decline from the $9.3 billion peak recorded on Aug. 13, which had been driven by a surge in Ethereum prices.

The correction has wiped out more than $1.6 billion in NFT market value in just over a week. Still, compared to July’s $6.6 billion, the NFT market is significantly larger, highlighting that despite sharp pullbacks, the sector remains on firmer ground than earlier this summer.

Outlook

For now, blue chip NFTs remain heavily tied to Ethereum’s price action. As ETH consolidates below its all-time high, NFT investors are bracing for more volatility. Whether CryptoPunks’ resilience can continue to act as a buffer for the broader NFT market remains an open question.