The NFT market, specifically CryptoPunks and Bored Ape Yacht Club (BAYC), is experiencing a significant downturn, with prices for CryptoPunks now below $100,000. This suggests the "bubble deflation" is ongoing, and investors who held instead of cashing out during peak gains are now facing substantial losses. The sentiment indicates a potential "final leg" of this deflation, implying further downside or a prolonged period of low activity in the NFT space.