NFT market cap slides back to 2021 pre-hype levels, near $1.5B

NFT minting expanded in 2025 even as sales fell sharply, leaving more tokens chasing fewer buyers. The global non-fungible token (NFT) sector fell below $1.5 billion in total market capitalization, returning to levels last seen before the sector’s rapid expansion in 2021. The retracement unfolded alongside a broader crypto market downturn over the past two weeks, CoinGecko data shows. On Jan. 23, total crypto market capitalization stood at about $3.1 trillion, before falling to $2.2 trillion on Friday. Major assets like Bitcoin (BTC) slid from around $89,000 to about $65,000, while Ether (ETH) fell from $3,000 to near $1,800 throughout the same time frame. Bitcoin and Ethereum are the top two networks for NFTs in terms of 30-day trading volume, according NFT data aggregator CryptoSlam. The NFT market cap drop follows several high-profile closures and exits, highlighting the sector’s continued contraction. The market reset has been compounded by a growing imbalance between NFT supply and buyer demand. As reported by Cointelegraph on Dec. 31, total NFT supply continued to expand even as sales and prices declined, pushing the sector into a high-volume, low-price structure. CryptoSlam data showed that the number of NFTs in circulation rose to nearly 1.3 billion in 2025, up by 25% compared to 2024. Total NFT sales fell 37% year-over-year to $5.6 billion, while average sale prices slipped below $100. The divergence suggests that while minting became cheaper and barriers to issuance fell, buyer participation and spending failed to keep up. Related: US prosecutors drop OpenSea NFT fraud case after appeals court reversal The drop follows a series of high-profile retreats that mirror the market's pullback. On Jan. 7, footwear giant Nike quietly offloaded RTFKT, the digital collectibles studio it acquired at the height of the NFT boom. The reported sale followed the company’s decision to shut down operations amid an investor lawsuit. In addition, marketplace shutdowns have ...