The non-fungible token (NFT) market continues to lose ground, showing a sharp decline in sales and active users. According to data from cryptoslam.io, transaction volume dropped to $119.5 million in the last week, accompanied by an 85,86% decrease in buyers and an 83,01% decline in sellers.
The most significant losses were observed in Ethereum-based NFTs, with their sales volume falling by 38,4% to $62.71 million over the past seven days. Bitcoin-NFTs also saw a major drop, down 71,3% to $6.78 million. Among the few projects that showed growth, Polygon stood out, with sales increasing by 10.98% to $8.13 million, Mythos up by 4,66%, and Base experiencing a substantial 61,5% rise.
Sotheby’s Adjusts Strategy Amid NFT Crisis
Amid the cooling of the digital collectibles market, major auction houses have begun seeking alternative ways to attract buyers. Sotheby’s announced it would accept Bitcoin (BTC) and Ethereum (ETH) in its auctions in Saudi Arabia in February.
According to analysts at Tuo Luo Finance, this move is part of efforts to adapt to the declining interest in NFTs and to attract new buyers through cryptocurrency payments.
Signals for Market Recovery
At the end of last year, before another downturn, the market began showing signs of recovery. According to CryptoValleyJournal, sales volume exceeded $800 million in late December, and transaction volumes reached 5 million. One of the factors behind the surge could have been the launch of the PENGU meme coin from the Pudgy Penguins collection, which attracted attention to other large projects.
Among the collections that showed consistent growth, EtherRocks — digital stones that were popular in 2017 — began selling again for over $1 million. Pudgy Penguins and Cryptopunks also saw increased sales volumes, while individual Azuki tokens reached up to $369.2 each.
Conditions for Market Revival
The NFT market could change thanks to new political initiatives. After Donald Trump’s victory in the elections, his administration adopted a more favorable stance on cryptocurrencies. Specifically, David Sacks, the crypto czar of the U.S. presidency, suggested classifying NFTs and memecoins as collectible assets.
According to analysts, this could have a significant impact on regulation, reducing risks from regulators and emphasizing their cultural and commemorative value rather than their purely speculative nature. If Sacks’ proposal gains support, the market could receive a new boost for growth.
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