The non-fungible token (NFT) market is experiencing a substantial downturn, losing over $1.2 billion in value within just a week. This decline coincides with a slowdown in the ETH price rally as reflected by sector data. Cointelegraph reports that NFT price floors have fallen to $8.1 billion, marking a 12% decrease from last Wednesday’s market cap of $9.3 billion, which previously surged by 40% since July. This sharp decline in valuations is closely tied to a 9% drop in Ether (ETH) prices. ETH trades at $4,260, down from its peak of around $4,700 on Wednesday. Many NFTs are minted on the Ethereum network and their values and sales are often denominated in ETH, making fluctuations in crypto asset’s value heavily impact the NFT market. The decline is especially prominent in the top 10 NFT collections, with most experiencing a decrease in value as well. CryptoPunks, leading by market capitalization, saw its value diminish by about $300 million. On Monday, CryptoPunk’s market cap dropped to $2.1 billion, reflecting a 12% decline from its previous valuation of $2.4 billion on Wednesday. The collection’s sales volume also decreased by 34% in the past seven days reaching $12.7 million. The Bored Ape Yacht Club (BAYC), which was ranked second in overall market capitalization last Wednesday, has fallen to third place with a market cap decline to $482.3 million. This represents a nearly 20% drop compared to Wednesday’s valuation of $602 million. Meanwhile, Pudgy Penguins climbed to the second-highest valuation despite losing around $100 million in overall value. On Monday, the collection’s market cap reached $491 million, representing a 17% decline from Wednesday’s $591 million. Last week, BTCS Inc., a publicly-traded blockchain company, announced that it had added three Pudgy Penguins NFTs to its corporate digital asset treasury. This move suggests companies are increasingly recognizing blue-chip NFT collections as legitimate assets for treasury diversification.