The global non-fungible token (NFT) market has retraced to levels not seen since before its explosive growth in 2021, with its total market capitalization falling below $1.5 billion. This decline is part of a broader two-week downturn across the cryptocurrency market, where the total crypto market cap dropped from approximately $3.1 trillion on January 23 to $2.2 trillion by early February.
Major cryptocurrencies, which serve as the primary networks for NFT trading, saw significant declines. Bitcoin (BTC) fell from around $89,000 to about $65,000, while Ethereum (ETH) dropped from $3,000 to near $1,800 during the same period. Data from aggregator CryptoSlam confirms Bitcoin and Ethereum remain the top two networks by 30-day NFT trading volume.
The NFT sector's contraction is exacerbated by a fundamental imbalance. In 2025, the total number of NFTs in circulation surged by 25% to nearly 1.3 billion. However, total NFT sales fell 37% year-over-year to $5.6 billion, pushing the average sale price below $100. This indicates that while minting became cheaper and supply expanded rapidly, buyer demand and spending failed to keep pace.
The market reset has been accompanied by a wave of high-profile corporate exits and platform closures. Footwear giant Nike quietly offloaded RTFKT, the digital collectibles studio it acquired during the NFT boom. Furthermore, the Gemini-owned marketplace Nifty Gateway announced it will cease operations on February 23 and has entered withdrawal-only mode, citing a prolonged market downturn. Social NFT platform Rodeo also stated it would shut down entirely in March after failing to achieve sustainable scale.
