NFT trader sells CryptoPunk after a year for nearly $10M loss

NFT Market Downturn: CryptoPunk Sale Reflects Broader Decline

The once-booming non-fungible token (NFT) market has seen a significant downturn, with the recent sale of a CryptoPunk NFT for a nearly $10 million realized loss. The sale, which took place on a large cryptocurrency investor, also known as a "whale," holding the NFT, reflects the continued decline in the blue-chip NFT market.

Investor Takes Significant Loss

The investor sold the CryptoPunk NFT for 4,000 Ether (ETH) worth more than $6 million at the time of writing. However, the investor originally purchased the NFT for 4,500 ETH, or roughly $15.7 million, a year ago, according to blockchain analytics firm Lookonchain. This means that the investor took a significant loss of over $9.7 million.

Loss Calculation

"Did he only lose 500 $ETH($774K)? No—he actually lost $9.73M!" Lookonchain wrote in an X post. "When he bought it, $ETH was trading at $3,509. By the time he sold, $ETH had dropped 57%," the platform added.

NFT Sales Data

Despite the significant loss, the $6 million transaction still ranks as the largest NFT sale over the past 30 days, according to data from CryptoSlam. The sale comes during a period of stagnation for NFTs, which have been lacking wider trader interest. NFT trading volume on Ethereum is down more than 53% over the past month, while Polygon’s NFT trading volume fell 41%.

Blue-Chip Collections See Steep Drop

The top blue-chip NFT collections have seen a significant drop in their floor prices, which are now down from their 2021 highs. CryptoPunks, one of the most popular NFT collections, have a floor price of about 43 ETH, or $68,000, down more than 61% from their record high of 113.9 ETH in October 2021.

Other Blue-Chip Collections

The Bored Ape Yacht Club’s floor price is also down 89%, while the Mutant Ape Yacht Club collection is down 93%, according to NFTpricefloor data. However, the Pudgy Penguin collection remains an outlier, reaching a new all-time high of over 25 Ether on Dec. 16, 2024, and amassing the highest sales volume of over $72 million in the first quarter of 2025.

SEC Investigation Closed

At the start of March, the US Securities and Exchange Commission closed its three-year investigation into Yuga Labs, an investigation initiated under former Chair Gary Gensler. The investigation aimed to probe NFT creators and marketplaces, to see if some NFTs, such as fractional NFTs, were securities.

Conclusion

The recent sale of the CryptoPunk NFT reflects the broader decline in the blue-chip NFT market. The sale of the NFT for a nearly $10 million loss is a significant event that highlights the continued downturn in the NFT market. As the NFT market struggles to regain its footing, investors are taking significant losses. The SEC’s closure of its investigation into Yuga Labs may provide some relief to the industry, but the overall market sentiment remains bearish.

FAQs

Q: What was the value of the CryptoPunk NFT sold by the investor?
A: The CryptoPunk NFT was sold for 4,000 Ether (ETH) worth more than $6 million.

Q: How much did the investor lose on the sale?
A: The investor took a loss of over $9.7 million on the sale.

Q: What is the current floor price of CryptoPunks?
A: The current floor price of CryptoPunks is about 43 ETH, or $68,000.

Q: What are some of the other blue-chip NFT collections that have seen a significant drop in their floor prices?
A: The Bored Ape Yacht Club and the Mutant Ape Yacht Club collections have seen a significant drop in their floor prices, down 89% and 93%, respectively.

Q: What was the outcome of the SEC investigation into Yuga Labs?
A: The SEC closed its three-year investigation into Yuga Labs, which aimed to probe NFT creators and marketplaces to see if some NFTs, such as fractional NFTs, were securities.