Connecting NFTs with DeFi: PunkStrategy’s Liquidity-Fueled $70 Million Growth

The PNKSTR token, which powers the PunkStrategy NFT project, has reached a market cap of $70 million, fueled by a 10% transaction fee that supports NFT buybacks and reduces token supply. One major investor, who purchased 3% of all tokens in early September at a price of $0.00295 each, now holds unrealized profits of about $2.1 million as the token trades close to $0.074 Whale Scores $2.1M as PunkStrategy NFT Token Hits $70M Valuation [ 1 ]. Created by TokenWorks, the project allocates 80% of collected fees to buying NFTs such as CryptoPunks, with 10% going to token repurchases and another 10% to protocol revenue. This cycle has enabled the protocol to acquire nine CryptoPunks, sell one, and burn 2.8% of the total token supply A Beginner's Guide to PunkStrategy and $PNKSTR [ 6 ].

The swift rise in valuation has drawn interest from both NFT enthusiasts and DeFi users. According to GMGN data, the token price has remained steady around $0.074 despite significant gains. Experts point out that this model could connect traditional NFT ownership with fungible token markets, providing liquidity for assets that are typically hard to trade Whale Scores $2.1M as PunkStrategy NFT Token Hits $70M Valuation [ 1 ]. TokenWorks is now extending this approach to other top-tier NFT collections, like Bored Ape Yacht Club (BAYC), Pudgy Penguins, and Moonbirds, through its NFTStrategy series. Each new token uses the same fee system, with 1% of proceeds paid as royalties to NFT creators and another 1% used to buy and burn the original PunkStrategy token The Rise of “NFT Strategy”: How PunkStrategy Uses … [ 5 ].

Many in the market see this project as a scalable blueprint for turning NFT collections into tokens, with its current valuation marking it as one of the most notable hybrid asset strategies of 2025. Still, there are risks, such as liquidity being concentrated among large holders and the need for ongoing demand for blue-chip NFTs. Blockchain analyst Wu Shuo has warned that if major holders sell off, it could strain liquidity and destabilize prices Whale Scores $2.1M as PunkStrategy NFT Token Hits $70M Valuation [ 1 ]. The long-term success of the model also depends on the overall health of the NFT market, as declining interest in collections like CryptoPunks or BAYC could weaken the project’s value foundation Whale Scores $2.1M as PunkStrategy NFT Token Hits $70M Valuation [ 1 ].

To combat arbitrage, TokenWorks has implemented flexible fee structures, initially setting a 95% purchase fee that gradually drops to 10%. While this helped limit bot activity, it also created an arbitrage window that allowed one address to earn $813,400 in just three hours A Beginner's Guide to PunkStrategy and $PNKSTR [ 6 ]. The team has since resolved these vulnerabilities, and plans are underway to launch a new NFTStrategy token each day for a week, expanding to collections like Chromie Squiggles and Goblintown A Beginner's Guide to PunkStrategy and $PNKSTR [ 6 ].

The project’s growth has sparked discussion about its impact on the wider NFT ecosystem. While Yuga Labs has not allowed its BAYC NFTs to be tokenized, TokenWorks’ system shows how automated, self-sustaining protocols can drive demand for NFT floors and offer fractional ownership to collectors. Some critics worry that tokenization could erode the uniqueness of NFTs, as seen with the DeGods token launch, where its market cap plummeted from $330 million to $70 million within hours. Supporters, however, argue that this approach could open up access to high-value NFTs and introduce new financial tools to the market.

As PunkStrategy and its related projects develop further, the emphasis remains on balancing new ideas with careful risk management. The current $70 million market cap highlights the appeal of tokenized NFT strategies for early movers, but expanding the model to more collections will require greater liquidity and wider market support. At present, the project stands as a leading example of the merging of NFTs and DeFi, with its future success depending on its ability to maintain both token utility and ongoing demand for NFTs in a competitive environment.