The NFT market capitalization has significantly decreased in August 2025 against the backdrop of a general cryptocurrency downturn, leading to reduced market activity.
Decline of the NFT Market Capitalization
On August 18, 2025, the capital of the NFT sector amounted to $8.1 billion, according to NFT Price Floor. This drop occurred amid a broader decline in the cryptocurrency market, particularly driven by losses in Ethereum.
It's worth noting that on August 13, the NFT market cap had reached $9.4 billion, buoyed by Bitcoin’s price surge and overall bullish market sentiment. This marked a 40% increase compared to the end of July, as stated by DappRadar.
The analytics portal CoinGecko reported slightly different figures but demonstrated a similar trend. From August 14, the NFT sector’s cap fell from $8.2 billion to $7.03 billion, indicating a 16.6% decline.
Impact of Ethereum's Price Drop on NFT Trading Volume
Trading volume and overall activity in the NFT sector sharply declined, as reported by CryptoSlam.
Since most NFTs are minted and traded on Ethereum, which handles over half of global NFT transaction volume, a price correction in ETH directly impacts the sector due to rising or volatile gas fees.
As the crypto market corrected on August 18, the floor prices of top NFT collections also took a hit, indicating a sector-wide revaluation.
Future of the NFT Sector Amid Uncertainty
Despite a few notable institutional purchases, the outlook for the NFT sector remains uncertain. Much depends on broader market recovery and whether the environment continues to support NFT innovation and user demand.
The NFT market cap has fallen to $8.1 billion, highlighting the current challenges facing the sector amid declining cryptocurrency prices. The future of NFTs hinges on the overall recovery of the crypto market.
