The worldwide non-fungible token ($NFT) sector fell beneath $1.5 billion in complete market capitalization, returning to ranges final seen earlier than the sector’s speedy enlargement in 2021.
The retracement unfolded alongside a broader crypto market downturn over the previous two weeks, CoinGecko knowledge exhibits. On Jan. 23, complete crypto market capitalization stood at about $3.1 trillion, earlier than falling to $2.2 trillion on Friday.
Main belongings like Bitcoin (BTC) slid from round $89,000 to about $65,000, whereas Ether (ETH) fell from $3,000 to close $1,800 all through the identical timeframe. Bitcoin and Ethereum are the highest two networks for NFTs by way of 30-day buying and selling quantity, in accordance $NFT knowledge aggregator CryptoSlam.
The $NFT market cap drop follows a number of high-profile closures and exits, highlighting the sector’s continued contraction.
Complete $NFT market cap chart. Supply: CoinGecko
Rising provide collides with falling demand
The market reset has been compounded by a rising imbalance between $NFT provide and purchaser demand.
As reported by Cointelegraph on Dec. 31, complete $NFT provide continued to develop whilst gross sales and costs declined, pushing the sector right into a high-volume, low-price construction.
CryptoSlam knowledge confirmed that the variety of NFTs in circulation rose to almost 1.3 billion in 2025, up by 25% in comparison with 2024. Complete $NFT gross sales fell 37% year-over-year to $5.6 billion, whereas common sale costs slipped beneath $100.
The divergence means that whereas minting grew to become cheaper and obstacles to issuance fell, purchaser participation and spending didn’t sustain.
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Company exits and platform closures add stress
The drop follows a collection of high-profile retreats that mirror the market’s pullback. On Jan. 7, footwear large Nike quietly offloaded RTFKT, the digital collectibles studio it acquired on the peak of the $NFT increase.
The reported sale adopted the corporate’s determination to close down operations amid an investor lawsuit.
As well as, market shutdowns have accelerated. Nifty Gateway, one of many earliest $NFT platforms, mentioned it’s going to shut on Feb. 23 and has entered withdrawal-only mode. The Gemini-owned platform cited a protracted market downturn because it winds down.
On Jan. 28, social $NFT platform Rodeo introduced it could stop operations after failing to scale sustainably. Rodeo mentioned it could transition to read-only mode earlier than shutting down completely in March.
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