NFTs losing $1.2 billion in valuation in less than a week coincided with a 9% decline in Ether prices

The non-fungible token (NFT) market shed more than $1.2 billion in value in less than a week as Ether’s rally slowed, according to sector data.

On Monday, NFT Price Floor data showed that the total valuation of NFT collections had declined to $8.1 billion, a 12% drop from Wednesday’s NFT market cap of $9.3 billion, which had soared 40% since July.

NFTs losing $1.2 billion in valuation in less than a week coincided with a 9% decline in Ether prices. At one time, Cointelegraph data showed ETH traded at $4,260, down from a high of around $4,700 on Wednesday.

Many NFTs are minted on the Ethereum network. With valuations and sales denominated in ETH, bullish or bearish momentum in the crypto asset often translates into increased or decreased value in the NFT sector. As ETH went down 4% in the past 24 hours, a majority of the top 10 collections also showed declines in value.

While it continued to be the top collection by market cap, CryptoPunks saw nearly $300 million wiped from the collection’s value.

Data showed it was worth $2.1 billion, down 12% from its 2.4 billion market cap on Wednesday.

CryptoSlam data showed that the collection’s sales volume hit $12.7 million, a 34% decline in the last seven days. Total sales only reached 51, down 28% in the last week.

The Bored Ape Yacht Club (BAYC), which was ranked second in overall NFT market cap on Wednesday, declined to third place on Monday, as the collection dropped to $482.3 million.

This represented an almost 20% decline from Wednesday’s $602 million.

Meanwhile, Pudgy Penguins jumped to the second-highest valuation despite erasing around $100 million in overall value.

On Monday, the collection’s market cap was $491 million, down 17% from Wednesday’s $591 million.