After a late 2024 rally, NFTs have lost momentum, mirroring a broader crypto market downturn.
According to DappRadar, 2024 was the worst year for the NFT sector since 2020, with a total trading volume reaching $13.7 billion and under 50 million in sales. The downward trend continued into 2025.
NFT Market Loses Steam as Crypto Cools
In December, NFT trading volume hit $1.36 billion, but it dropped 26% in January and then another 50% in February, according to DappRadar analyst Sara Gherghelas. “While NFTs had been showing signs of a comeback in recent months, their momentum has slowed since the start of the year,” Gherghelas said in a March 6 industry report.
The NFT slump follows a broader crypto market cooldown. In December, the total crypto market cap hit an all-time high of $3.71 trillion, with major cryptocurrencies posting big gains, according to CoinMarketCap. But as crypto prices cooled, so did NFT demand.
Source: DappRadar
Gherghelas noted that NFT valuations are closely tied to crypto prices. When crypto surges, NFT trading tends to pick up. But when the market pulls back, NFTs often take a bigger hit.
More About NFT Analytics
The latest DappRadar report highlights key shifts in the Web3 space, showing that Solana and NEAR remain dominant in user activity despite minor fluctuations. Gaming and AI are the fastest-growing sectors, with the gaming dapp LOL seeing a 40% activity spike and Alaya AI surging 72%, reflecting rising demand for AI-driven Web3 experiences.
In DeFi, traders are prioritizing cost efficiency, as Uniswap V2 usage increased while Uniswap V3 declined. Meanwhile, new blockchain networks like Matchain are gaining traction, introducing fresh competition. These trends suggest that decentralized applications are becoming a bigger part of everyday digital life.
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