According to CoinGecko, the global NFT market capitalization has broken below the $1.5 B mark. The sector has reverted to figures seen before the 2021 hype. This sharp pullback mirrors the broader crypto market correction over the past two weeks.
The total value of digital assets dropped from $3.1 T (on January 23) to $2.2 T this Friday.
Major coins took a heavy hit: Bitcoin slid from $89,000 to the $65,000 range, while Ether fell from $3,000 to $1,800. Since CryptoSlam data shows these two networks remain the leaders by NFT trading volume, the drop in base assets inherently devalues collections.
Minting More, Buying Less
The market is suffering from token oversupply and weak demand. Supply continues to grow despite falling sales, leaving the sector flooded with cheap, illiquid assets.
In 2025, the number of NFTs in circulation jumped by 25%, reaching nearly 1.3 billion units. Meanwhile, total sales volume plunged 37% year-over-year to $5.6 B, while the average transaction value dipped below $100. Entry barriers have lowered, making minting more accessible, yet purchasing power fails to keep up with this pace.
Platform Exodus
Amid this downturn, major players are exiting the market. On January 7, Nike quietly offloaded RTFKT, the studio it acquired at the peak of the digital art craze. The sale followed the company's decision to wind down operations due to an investor lawsuit.
Retail platforms are also buckling under pressure. Nifty Gateway, one of the oldest marketplaces, will close on February 23. The platform has already shifted to withdrawal-only mode. Social NFT platform Rodeo announced it was ceasing operations on January 28; the project failed to scale and will fully disconnect its servers in March.
This post is for informational purposes only and does not constitute advertising or investment advice. Please do your own research before making any decisions.