It was a rollercoaster week in the markets, to say the least. And at first glance, some top NFT collections looked like they held strong. Over the past 7 days, CryptoPunks rose +5.2% in ETH terms, Mutant Apes +5.1%, and Lil Pudgys +6.5%. Yet in dollar terms, those same collections fell between -6% and -9% over the same span.
Why? Because with trade war volatility ramping up, ETH dropped against USD on the week. That means even as some NFT floors rose in ETH, their dollar values sank. On top of that, the dollar itself took a hit, with the DXY falling ~3% since last Friday as nervous investors rotated out of USD and into assets like gold and the yen.
Still, there’s a silver lining. Seeing collections like 'Punks tick up in ETH terms shows that ETH-native collectors are still bidding, even amid the broader macro picture.
And there’s hopium yet: if the weakening dollar continues to push capital into crypto, we could see ETH rally, and with it, NFT floors may climb in kind.
For now, though, uncertainty reigns. But one thing’s clear: as the world’s money starts to increasingly hedge against America, the ripple effects will be felt all the way down the chain, from treasury bonds to onchain JPGs…
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Not financial or tax advice. Bankless content is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
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