NFT trading volume drops 63% since December

The non-fungible token (NFT) market has seen a sharp decline in trading volume, dropping by over 63% since December 2024.

In December, NFT trading volumes reached $1.36 billion, but this figure fell by 26% in January and another 50% in February, according to DappRadar.

This downturn is closely tied to the broader crypto market, which surged to a capitalisation of $3.71 trillion in December but declined in February due to macroeconomic uncertainties.

Despite the drop in trading volume, NFT activity saw a slight increase in February, with a 6% rise in users interacting with NFT platforms, driven by interest in AI-powered assets.

The NFT market had its worst year since 2020 in 2024, recording $13.7 billion in trading volume and under 50 million in sales.

However, forecasts suggest moderate growth in 2025, driven by emerging use cases and increased utility in digital collectibles.

"The increasing integration of artificial intelligence into NFT projects signals a shift toward more dynamic, interactive digital assets with enhanced utility," Sara Gherghelas from DappRadar noted.

This suggests that while speculative trading may fluctuate, NFTs with strong utility and real-world applications will drive long-term adoption in Web3.

Profile picture NFTs generated the highest trading volume in February, followed by gaming NFTs.

Sports NFTs dominated sales, accounting for a significant number of transactions.

The NFT market’s future remains uncertain, with some projections estimating it could reach $61 billion by 2025.

However, short-term challenges remain due to regulatory scrutiny and macroeconomic conditions.