NFT Trading Volume Plummets 63%: Can AI-Powered Assets Revive the Market?

The non-fungible token (NFT) market faces a steep downturn, with NFT trading volume plunging 63% since December 2024, according to a March 6 DappRadar report. After a brief resurgence late last year, the sector recorded just $13.7 billion in total 2024 trading volume—its worst performance since 2020.  

Steep Decline in NFT Trading Volume  

NFT trading volume peaked at $1.36 billion in December 2024 before plummeting 26% in January and another 50% in February. This dramatic drop coincided with a broader crypto market slump, which saw Bitcoin swing from a record $109,000 in January to losses amid macroeconomic uncertainty. Sara Gherghelas, a DappRadar analyst, noted that falling crypto prices directly impacted NFT valuations, as speculative traders retreated.  

Correlation with Crypto Market Turbulence  

The crypto market’s volatility played a key role in shrinking NFT trading volume. The sector’s December rally mirrored crypto’s all-time high of $3.71 trillion in market capitalization. However, by February, fears over U.S. trade policies and dwindling decentralized app activity—daily active wallets fell 8% to 24 million—eroded confidence. “While NFTs showed signs of a comeback, momentum slowed sharply in 2025,” Gherghelas explained.  

A Glimmer of Hope: AI-Powered NFTs Gain Traction  

Despite the slump, February saw a 6% rise in NFT activity, with 3.5 million users interacting with NFT platforms. Analysts credit AI-driven projects for this rebound. “AI integration is creating dynamic, utility-rich NFTs, which could redefine the market,” Gherghelas said. This shift suggests that **NFT trading volume** may increasingly rely on innovation rather than speculation.  

Category Leaders: Profile Pictures and Gaming Dominate  

Profile picture NFTs led February’s NFT trading volume, generating $243 million across 76,385 sales. Gaming NFTs followed with $41 million in volume, while sports NFTs dominated transaction counts (659,097 sales). However, these figures pale compared to 2022’s peak, when the market saw $57.2 billion in trading volume.  

The Road Ahead: Utility Over Speculation  

Though 2024’s NFT trading volume marks a low, the rise of AI-enhanced assets hints at a new chapter. Projects blending art, gaming, and real-world utility could attract lasting interest. As Gherghelas emphasized, “Long-term adoption hinges on NFTs that offer engagement and practical value.” For now, the market remains in flux—but innovation may yet reignite its spark. The Bit Gazette has all the up-to-date crypto news and analysis.