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The NFT market cap has crashed below $1.5 billion, erasing nearly all value gained during the 2021 boom as minting activity surges while buyer demand collapses, according to CoinGecko data.
Data from CoinGecko shows the Nft market cap slipping below $1.5 billion, effectively erasing much of the value built during the last market cycle. The decline has unfolded alongside a broader crypto market downturn that has dragged on risk assets across the board over the past two weeks.
On Jan. 23, total crypto market capitalization stood at roughly $3.1 trillion. By Friday, that figure had dropped to around $2.2 trillion, reflecting sharp losses in major assets.
Bitcoin fell from about $89,000 to near $65,000, while Ether slid from around $3,000 to approximately $1,800 over the same period. These moves matter directly for NFTs, as Bitcoin and Ethereum remain the two largest networks for NFT trading by 30-day volume, according to CryptoSlam.
As liquidity drains from the broader market, the Nft market cap has continued to compress, reinforcing the idea that NFTs remain highly sensitive to macro crypto conditions.
One of the most striking dynamics behind the falling Nft market cap is the widening gap between supply and demand. Even as prices and transaction volumes decline, NFT minting has continued to expand at scale.
According to CryptoSlam data, the number of NFTs in circulation climbed to nearly 1.3 billion in 2025, representing a 25% increase compared to 2024. Over the same period, total NFT sales dropped 37% year-over-year to $5.6 billion, while average sale prices slipped below $100.
Cointelegraph previously described this shift as a move toward a “high-volume, low-price” market structure, where cheaper minting and lower issuance barriers have flooded the market with new tokens. That imbalance has placed sustained pressure on the Nft market cap, as more assets compete for a shrinking pool of buyers.
The data suggests that while creators face fewer technical and financial hurdles to mint NFTs, buyer participation has not kept pace. As a result, the Nft market cap has struggled to stabilize, even during periods when overall minting activity accelerates.
The slide in the Nft market cap has been compounded by a series of high-profile corporate exits that highlight the sector’s ongoing contraction. On Jan. 7, footwear giant Nike offloaded RTFKT, the digital collectibles studio it acquired during the height of the NFT boom.
The sale followed Nike’s decision to shut down RTFKT’s operations after the unit became entangled in an investor lawsuit. The move was widely interpreted as a signal that large brands are reassessing their NFT strategies as returns fail to materialize.
Marketplace closures have also accelerated. Nifty Gateway, one of the earliest NFT platforms and a subsidiary of Gemini, announced it will shut down on Feb. 23 and has entered withdrawal-only mode. The company cited a prolonged market downturn as the primary reason for winding down operations.
Similarly, social NFT platform Rodeo said on Jan. 28 that it would cease operations after struggling to scale sustainably. The platform plans to move to read-only mode before shutting down entirely in March.
Each exit adds further strain to the Nft market cap, reducing liquidity, visibility, and confidence across the ecosystem.
Analysts point to a structural reset rather than a temporary slump. As CoinGecko data indicates, the Nft market cap is adjusting to a post-hype reality where utility, revenue, and long-term engagement matter more than speculative flips.
A CryptoSlam analyst noted that falling prices are not necessarily a sign of total collapse, but rather “a repricing of digital collectibles in line with actual demand and usage.” That repricing, however, has left the Nft market cap far below its previous highs.
Without a strong influx of new buyers or compelling use cases beyond collectibles, the Nft market cap may continue to drift sideways, even if crypto markets recover.
Despite the downturn, developers and platforms continue to experiment with NFTs in gaming, identity, and tokenized media. Whether these efforts can reverse the slide in the Nft market cap remains uncertain.
What is clear is that the sector has entered a new phase. The days of rapid valuation growth driven purely by hype appear to be over. Instead, the Nft market cap is now acting as a barometer for real adoption, sustainable demand, and economic value.
As the crypto market recalibrates, the Nft market cap is likely to remain under pressure until supply and demand find a new equilibrium. For now, the return to pre-2021 levels serves as a reminder that innovation alone is not enough—markets ultimately reward utility, liquidity, and trust.
Whether NFTs can rebuild those pillars will determine where the Nft market cap goes next.
