NFTs Are Down, Not Dead

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The global non-fungible token market, which was once a topic of discussion on social media platforms two years ago, is experiencing its lowest levels of the year, with total market capitalization dropping to approximately $2.5 billion. Nonetheless, the global NFT market is not yet dead, but it is certainly in a state of deep slumber. In this article, we will explore some key tips for reviving the NFT market.

NFT Market Down +70% From Jan 2025

Data fetched by nfnpricefloor.com, one of the on-chain non-fungible token collection explorers, shows that the global NFT market is experiencing its lowest levels of the year, with total market capitalization dropping to approximately $2.5 billion in December. This figure represents a 72% decline from the early January peak of $9.2 billion. The number of NFT investors has also fallen from over 204,000 in late November to roughly 135,000 by December.

nft market cap

In December, the global NFT market also recorded reduced sales, with weekly sales failing to surpass $70 million during the first three weeks of the month, falling short of November’s already weak performance. The global NFT market has also seen low participation from NFT buyers and sellers, as well as a decline in interest in blue-chip collections. Most “blue-chip” collections have seen double-digit percentage drops in floor prices over the last 30 days.

CryptoPunks, a globally acknowledged non-fungible token collection featuring a limited edition of 10,000 pixilated NFTs previously created by the digital asset company Larva Labs, but now managed by Infinite Node Foundation, is down 12% in the past 30 days. The Bored Ape Yacht Club, a NFT collection from the digital asset incubation studio Yuga Labs, is also down 28%.

Pudgy Penguins, a globally acknowledged non-fungible token collection featuring a fixed edition of 8,888 NFT birds created by the digital asset company Igloo Inc., is down +10.6%. Notably, it recently overtook BAYC to become the second-largest collection by market cap. Hypurr NFT series has also experienced the sharpest decline among top projects, shedding 48% of its value.

The downturn is attributed to a combination of macroeconomic uncertainty, reduced liquidity in the broader crypto market, and a shift in focus from speculative “hype” toward projects with practical utility, such as gaming, ticketing, and digital identity. The global NFT market is experiencing a decline due to reduced investor interest, high inflation, and rising interest rates. But what needed to be done to revive the NFT sector?

What Are The NFT Revival Strategies?

In 2025, the NFT landscape is undergoing a significant transformation. However, before the NFT market rebounds again, certain trends are destined to die. What needs include low-effort and derivative collections built purely as a gamble, high-priced NFT mints with no substance, designed solely to fund teams upfront with no accountability, and every incentive to walk away, as well as oversized supply launches and endless secondary collections that exist solely for extraction. What needs to die also are models that farm communities to the point of exhaustion.

NFTs are going to matter again when all people return to what made them powerful in the first place: collectability, craft, and the magic from genuine creation. NFTs will matter again when all traders stop chasing money and start valuing the work that goes into them. NFTs are going to matter again when we return to creators who are still trying. It’s worth noting that teams that stay are teams that evolve. It’s smaller promises, but supported by consistent commitment.