NFT Market Returns to Pre-2021 Reality

The global NFT market has contracted to levels seen before the 2021 boom. Total market capitalization has dropped below $1.5 billion, signaling a return to valuations from before the period of explosive growth in interest in this segment.

This decline coincided with a broader downturn in the cryptocurrency market over the past two weeks. Total crypto market capitalization fell from approximately $3.1 trillion to $2.2 trillion.

One of the main challenges facing the NFT market is rising supply combined with declining demand. The number of NFTs in circulation grew to nearly 1.3 billion in 2025, representing a 25% year-over-year increase. At the same time, total sales value dropped by 37% to $5.6 billion, while the average price per transaction fell below $100. Minting tokens has become cheaper and easier, but the number of active buyers and their spending levels have failed to keep pace with the growing issuance.

Market pressure has also intensified due to the withdrawal of major companies and the shutdown of platforms. In early January, Nike divested from its digital studio RTFKT, which it had acquired at the peak of NFT popularity. The decision followed the studio’s closure and a legal dispute with investors. Trading platforms are also disappearing from the market. Nifty Gateway announced it will cease operations on February 23 after previously entering withdrawal-only mode. Meanwhile, the social platform Rodeo has announced the shutdown of its project due to scaling issues and is expected to end operations in March.