NFT Market Declines Drastically for the Fifth Quarter in a Row

The NFT market is going through its worst stretch in history. According to DappRadar, NFT trading volume fell to $823 million in the second quarter of 2025. That’s a steep drop from $4 billion during the same period in 2024. The downturn marks the fifth straight quarterly decline and confirms what many had feared — the NFT winter isn’t over. It’s deepening.

Even by crypto standards, the fall is dramatic. From colourful cartoon JPEGs worth six figures to barely moving volumes on OpenSea, the story has changed. And for creators, collectors, and platforms alike, this may be the most difficult stretch yet.

A Long Winter for Digital Collectibles

The decline from Q1 to Q2 this year alone was 19%. But the broader picture is worse. NFT sales have been falling steadily for over a year. 2025 is now officially the worst year for NFTs on record.

The market has cooled across the board. From long-established names like Bored Ape Yacht Club to fledgling new projects trying to find an audience, everyone’s feeling the cold. Creators are struggling to attract attention. Buyers have pulled back. Platforms are seeing fewer users.

The reasons aren’t surprising. Retail interest has dried up. Many people rushed into NFTs for quick profits in previous years. Those speculators are now gone. Gas fees on Ethereum remain high. And the media buzz that once fueled the industry has disappeared. In short, there’s less excitement, more caution, and a growing sense that digital collectibles may have been overhyped.

From $69 Million to Silence

It wasn’t always like this. NFTs exploded into the mainstream in 2021 and 2022. Back then, it was a digital gold rush. Headlines about million-dollar cartoon images and artists making fortunes overnight were everywhere. Christie’s auctioned Beeple’s “Everydays” for $69 million, setting a record and kicking off the hype cycle.

In that golden era, NFT trading volume topped $50 billion in a single year. From celebrities to sports teams, everyone wanted in. Tokenized sneakers, music albums, profile pictures — anything could be minted and sold.

But what rose quickly also fell fast. Prices began to tumble in mid-2022. By 2023, the decline was sharp. And by 2024, it was clear that the excitement wasn’t coming back anytime soon. Collections that once traded for hundreds of thousands now sit dormant. Some are worth next to nothing.

Investors who bought at the top are sitting on losses. For many, their NFTs are essentially worthless.

NFT Platforms Losing Steam

Marketplaces have been hit hard, too. OpenSea, once the most dominant platform, has seen a massive drop in both users and volume. Rival platforms like LooksRare and Blur have tried to stem the bleeding. They’ve introduced aggressive rewards, lowered fees, and launched new incentive schemes. But results have been underwhelming.

Even platforms that once drew loyalty from high-volume traders are now struggling to stay relevant. NFT activity just isn’t what it used to be.

The cultural energy around NFTs has also died down. Once, celebrities and influencers led the charge. From musicians to basketball stars, everyone had a drop. Now, most have gone quiet. Projects launched during the boom are either abandoned or labelled as scams. For new artists, the scene is harder than ever to break into.

The mood has shifted from hype to hesitation. Buyers are more cautious, and skepticism is rising.

Even Trump Can’t Save the Market

One of the few high-profile figures still actively promoting NFTs is Donald Trump.

Since re-entering the political arena, Trump has launched four NFT collections. Each one features exaggerated or humorous versions of himself — as a superhero, holding gold bars, or hugging a Bitcoin logo.

Every collection has sold out. In 2023, he even hosted a dinner event for NFT holders. The drops have become a mix of political branding and digital art. They’re also part of his broader fundraising efforts.

But despite Trump’s star power, the results are telling. His NFT collections may draw momentary attention, but they haven’t reversed the overall decline. The Bitwise Blue-Chip NFT Index, which tracks the performance of leading collections, is down 52% since January 2024. That’s around the time Trump’s campaign began ramping up.

Even flashy new drops aren’t enough to revive the market. A few headlines and sales don’t equal sustained demand.

Crypto’s Other Corners Are Doing Fine

The rest of the crypto world tells a different story. While NFTs are in freefall, major cryptocurrencies have seen a rebound. Bitcoin and Ethereum both recovered in 2024, thanks to rising institutional interest and positive developments around crypto ETFs. Those tokens gained back some of their lost value and brought optimism to the space.

But NFTs haven’t shared in that bounce. Digital collectibles seem to be operating on a different timeline. One that’s still headed downward. While coins are once again part of investor conversations, NFTs are mostly absent from serious portfolios.

What’s Next?

The future of NFTs is unclear. There’s no doubt they introduced powerful concepts. Digital ownership, provenance, and creator royalties are meaningful. But the speculative frenzy distorted those ideas. Too many rushed in without understanding what they were buying.

Now, what’s left is a sobering reset. A necessary cooling-off period. The days of sky-high valuations and million-dollar JPEGs may be over for good. But that doesn’t mean NFTs are finished. It just means the hype is.

NFT creators and marketplaces will need to refocus. That might mean building real utility, supporting communities, or integrating NFTs into games, events, and media in smarter ways. But right now, the numbers don’t lie. The NFT market is in a slump, and it’s the deepest it’s ever been.

Conclusion

NFTs are enduring a brutal stretch. Five straight quarters of decline. Trading volume that’s collapsed by billions. And once-popular collections now barely trading at all.

The speculative thrill is gone. What remains is a fragmented, quiet space trying to figure out its next chapter. Some parts of crypto are rising again. NFTs are not.

Until creators, platforms, and investors find a new path forward, the long winter in digital collectibles will likely continue.