NFT Market Hits 18-Month Low With 19% Q2 Decline

The NFT market has reached its lowest point in a year and a half, indicating a prolonged downturn in digital collectibles. Sales volume plummeted to $823 million in the second quarter of 2025, a significant drop from $4 billion during the same period in 2024. This marks a 19% decline from the first quarter of this year and the fifth consecutive quarterly decrease, painting a grim picture for digital collectible investors and creators.

2025 has been the worst year in NFT history, with no signs of recovery. The decline has affected every sector of the industry, from established collections like Bored Ape Yacht Club to newer, smaller projects. Experts attribute this downturn to several factors, including waning interest among retail traders who initially flocked to digital collectibles for quick profits. High gas fees on Ethereum, diminishing media attention, and growing skepticism about the long-term value of NFTs have also contributed to the decline. Essentially, fewer people are buying, selling, or discussing digital collectibles.

NFTs surged into the mainstream in 2021 and 2022, creating overnight millionaires and a new generation of digital collectors. Landmark sales, such as the Beeple auction at Christie’s, which fetched $69 million, garnered global attention. During this peak, trading volume in digital collectibles exceeded $50 billion annually, with some crude cartoon images selling for over $500,000 each. However, the gold rush did not last forever. Prices began to plummet in mid-2022, erasing billions in value. Collections that once commanded high-profile attention now sell for a fraction of their peak prices, leaving numerous investors with essentially worthless assets.

The decline in traffic and trading activity has impacted major NFT marketplaces like OpenSea, once the dominant platform for collectors. Other platforms, including LooksRare and Blur, are offering heavy incentives to retain users, but with little success. Even celebrities and bands that once aggressively promoted digital collectibles are now quiet. Many projects launched during the hype period are either defunct or have been exposed as scams. With buyer sentiment low, the mood around digital collectibles has shifted to cautious optimism and skepticism.

One of the last high-profile figures still promoting digital collectibles is the former US president, Donald Trump. Since re-entering the political arena, he has released four NFT collections featuring bold and humorous interpretations of himself. Each release has sold out within hours, and he held a special NFT holders’ dinner in 2023 that garnered significant media coverage. However, even Trump’s celebrity status has not reversed the broader market decline. The Bitwise Blue-Chip NFT Collections Index, which tracks the performance of top NFT art and collectible projects, has dropped 52% since January 2024, indicating that new infections may cause temporary interest but do not sustainably move markets.

Meanwhile, other segments of the crypto space have shown resilience. Bitcoin and Ethereum rebounded in price in 2024 due to institutional investment and optimism around exchange-traded funds (ETFs). However, NFTs have not benefited from this bounce, highlighting the unique challenges facing the digital collectibles market. The future of NFTs remains uncertain as the industry navigates this prolonged downturn and seeks new ways to regain investor confidence and interest.