Ethereum-based NFTs Plunge 59.3% in March 2025, Major Collections Face Losses

Ethereum-based NFTs experienced a significant downturn in March 2025, with sales declining by 59.3%. This sharp decrease was evident across major collections, with the exception of CryptoPunks, which saw growth. Collections such as Bored Ape Yacht Club and Pudgy Penguins faced losses exceeding 50%, underscoring the broader weakening of Ethereum’s NFT market.

Despite the overall market contraction, some brands and creators continued to innovate. For example, Azuki collaborated with artist Michael Lau to introduce a new physical-backed NFT concept, while The Sandbox partnered with Jurassic World to integrate licensed dinosaurs into its metaverse. These initiatives highlight the ongoing interest in creative possibilities within the NFT space.

However, the market downturn has led to significant challenges for many platforms. Bybit recently announced the closure of its NFT Marketplace and related services due to diminished trading activity. Similarly, X2Y2, which had handled $5.6 billion in trading volume, is shutting down after a 90% decline in activity since the NFT market peak in 2021. X2Y2’s official announcement stated, “Marketplaces live or die by network effects. We fought tooth and nail to be #1, but after three years, it’s clear it’s time to move on. The NFT chapter taught us a lot—most of all, that lasting value beats chasing trends. That lesson’s why we’re drawing a line here, not a pause or a maybe, but a full stop on X2Y2 as we knew it.”

Kraken also terminated its NFT operations in February 2025, shifting its focus to other business ventures as the NFT landscape evolves. The decline in NFT-related tokens has been equally alarming, with Magic Eden losing 94% of its value since its debut just four months ago, and Pudgy Penguins (PENGU) experiencing a near 30% drop over the last month, despite being listed on Coinbase.

Ethereum, the leading blockchain for NFTs, has also felt the impact of declining activity. Its transaction fee income has plummeted 95% since late 2021, largely due to a reduction in NFT transactions and diminished contributions from Layer 2 solutions. Consequently, Ethereum’s price has dropped 58.8% from its all-time high, with Q1 2025 marking its worst quarter since 2018.

The recent downturn in the NFT market raises significant questions about the future of digital collectibles. As platforms close and trading volumes diminish, the industry may need to reassess its value proposition. However, with innovative projects still emerging, there may be flickers of hope that can reshape the NFT landscape moving forward.