The global non-fungible token (NFT) art market has faced significant fluctuations since its inception in 2020, evolving from niche enthusiasm to mainstream frenzy, followed by a steep decline. We explore the reasons behind the over 90% drop in trading volume.
NFT Art Sales Fall In Q1
On March 27, 2025, DappRadar released a report on the NFT art market which showed that the trading volume had dropped by over 90%, plummeting from a high of $2.9 billion to $23.8 million in Q1 2025.
Historical Rise and Sharp Decline
The NFT art market began in early 2020 with a trading volume of $28.7 million and over 101,000 sales on Ethereum. Interest surged in late 2021, reaching a peak in trading volume of $2.9 billion. However, the market momentum slowed by mid-2022, and trading volumes fell to $23.8 million by 2025.
Analysis of Decline Causes
DappRadar's data indicates that in 2022, high demand with relatively few sellers pushed up prices. However, falling buyer numbers soon reduced trading volumes, highlighting reduced investment interest in NFT art.
The sharp decline in the NFT art market reflects a significant shift in market sentiment. Despite this, a small community of collectors continues to support the segment.
