NFTs hit the brakes: Market cap tanks 46% in just 30 days
The NFT market experienced a sharp 45% decline in market capitalization over the past 30 days, dropping from $6.6 billion to $3.5 billion, despite a 13% increase in October sales activity. Ethereum, Solana, Immutable, and Avalanche saw significant declines, and blue-chip NFT collections, including CryptoPunks and Moonbirds, faced notable drops in floor prices and trading volume. However, collections like BAYC and Pudgy Penguins recorded higher volumes but still suffered value declines. This volatility highlights the speculative nature of the NFT market. Meanwhile, major players like OpenSea and Animoca Brands are expanding into broader Web3 initiatives, with the latter planning a Nasdaq listing despite declining secondary NFT market activity.
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NFT Market Faces a Significant Decline
The non-fungible token (NFT) market has lost nearly half its value in the past 30 days, even as trading activity increased in October. CoinGecko data reveals that the global NFT market capitalization plunged from about $6.6 billion on Oct. 5 to $3.5 billion on Nov. 5, marking a staggering 45% drop in just 30 days. Despite this downturn, trading activity did see an uptick, with CryptoSlam data showing NFT sales in October rose by 13% to reach $631 million, compared to $556 million in September.
Performance of Blockchain Platforms
Not all blockchains performed equally during this period. Bitcoin and Base NFTs showed resilience, witnessing 9% and 24% increases, respectively. However, other platforms like BNB Chain and Polygon suffered heavy losses, with declines of 82% and 86%, respectively. Ethereum, the largest blockchain by NFT sales volume, experienced a 25.5% decline, while other networks like Solana, Immutable, and Avalanche saw drops ranging from 31% to 35%.
Blue-Chip NFTs and Volatility
The latest market correction has also impacted blue-chip NFT collections, exposing their fragile valuations. For instance, CryptoPunks experienced a 40% decline in trading volume, with floor prices dropping from $214,000 on Oct. 5 to $117,000 on Nov. 5. Similarly, Moonbirds saw its trading volume plummet 63%, while floor prices more than halved from $14,700 to $6,500.
Some collections like the Bored Ape Yacht Club (BAYC) and Pudgy Penguins recorded increases in trading volumes (30% and 83%, respectively), yet experienced significant drops in valuation. BAYC’s floor prices fell by nearly 47%, from $36,700 to $19,500, while Pudgy Penguins saw a drop from $43,000 to $18,340. This disconnect between trading activity and valuation highlights the speculative and fragile nature of liquidity in the NFT market.
Shifts in Industry Strategies
Despite the cooling NFT market, major industry players are adapting and exploring new strategies. In October, OpenSea, the dominant digital collectible marketplace, announced its expansion into a universal onchain trading hub. Although OpenSea continues focusing on NFTs, it denied speculation about pivoting away from the market.
Similarly, Animoca Brands, a leader in the NFT and Web3 space, revealed plans to list on Nasdaq, signaling increasing recognition of Web3 gaming and metaverse companies by traditional capital markets. These moves indicate a strategic recalibration by industry leaders amid contracting secondary NFT markets.