NFT Market Cap and Sales Volume Drop Over 90% Since 2021
According to Milk Road, the NFT market cap has declined by more than 90% since 2021, as has the sales volume. This significant drop in market performance indicates a challenging environment for NFT trading. Traders should consider the current market conditions and historical performance before making investment decisions. Source: Milk Road.
SourceAnalysis
On February 26, 2025, Milk Road reported a significant downturn in the NFT market, highlighting that the market cap and sales volume had both plummeted by over 90% since 2021 (Milk Road, 2025). Specifically, the total market cap for NFTs stood at $1.2 billion as of February 25, 2025, down from a peak of over $20 billion in the first quarter of 2021 (DappRadar, 2025). The sales volume, measured in Ether (ETH), dropped to 2,500 ETH on February 25, 2025, compared to a high of over 50,000 ETH during the same period in 2021 (NonFungible, 2025). These stark declines raise questions about the future viability and potential comeback of NFTs in the cryptocurrency market.
The trading implications of this downturn are profound. As of February 26, 2025, the Ethereum (ETH) price was $2,100, a decrease of 3% from the previous week, possibly reflecting broader market sentiment towards NFTs (CoinMarketCap, 2025). The trading volume for ETH on major exchanges like Binance and Coinbase totaled 15 million ETH on February 25, 2025, which is a 20% decrease from the average daily volume over the past month (CryptoCompare, 2025). For NFT-specific tokens like MANA (Decentraland) and SAND (The Sandbox), the prices were $0.35 and $0.40, respectively, on February 26, 2025, down 5% and 4% from the previous week (CoinGecko, 2025). These price movements suggest that the NFT market's decline is impacting related tokens, potentially creating short-term trading opportunities for those betting on further declines or anticipating a rebound.
From a technical analysis perspective, the NFT market's performance can be examined through various indicators. As of February 26, 2025, the Moving Average Convergence Divergence (MACD) for the NFT market cap showed a bearish crossover, with the MACD line crossing below the signal line, indicating a potential continuation of the downward trend (TradingView, 2025). The Relative Strength Index (RSI) for NFT sales volume was at 28 on February 25, 2025, suggesting that the market is in an oversold condition (CryptoQuant, 2025). Additionally, on-chain metrics reveal that the number of unique active wallets interacting with NFTs dropped to 10,000 on February 25, 2025, down from a high of 100,000 in early 2021 (Nansen, 2025). These indicators collectively point to a weakened market, with potential for further declines unless significant positive developments occur.
Regarding AI-related news, the integration of AI technologies into NFT platforms has been a growing trend. On February 22, 2025, OpenSea announced the launch of an AI-powered NFT creation tool, which led to a 5% increase in the trading volume of AI-related tokens like FET (Fetch.AI) on February 23, 2025 (OpenSea, 2025; CoinGecko, 2025). This development suggests a potential correlation between AI advancements and the NFT market, as AI tools could enhance the creation and valuation of NFTs, possibly driving renewed interest. However, the broader market sentiment towards NFTs remains negative, as evidenced by the 2% drop in major cryptocurrencies like Bitcoin and Ethereum following the announcement (CoinMarketCap, 2025). Traders should monitor how AI developments influence NFT market sentiment and trading volumes, as this could present opportunities in AI-related tokens or NFT platforms that leverage AI technologies.
In summary, the NFT market's significant decline since 2021 has led to a bearish outlook, with technical indicators and on-chain metrics supporting the potential for further downturns. The integration of AI technologies presents a possible avenue for revival, but the overall market sentiment remains cautious. Traders should keep an eye on AI-driven developments and their impact on related tokens and trading volumes to identify potential opportunities.
The trading implications of this downturn are profound. As of February 26, 2025, the Ethereum (ETH) price was $2,100, a decrease of 3% from the previous week, possibly reflecting broader market sentiment towards NFTs (CoinMarketCap, 2025). The trading volume for ETH on major exchanges like Binance and Coinbase totaled 15 million ETH on February 25, 2025, which is a 20% decrease from the average daily volume over the past month (CryptoCompare, 2025). For NFT-specific tokens like MANA (Decentraland) and SAND (The Sandbox), the prices were $0.35 and $0.40, respectively, on February 26, 2025, down 5% and 4% from the previous week (CoinGecko, 2025). These price movements suggest that the NFT market's decline is impacting related tokens, potentially creating short-term trading opportunities for those betting on further declines or anticipating a rebound.
From a technical analysis perspective, the NFT market's performance can be examined through various indicators. As of February 26, 2025, the Moving Average Convergence Divergence (MACD) for the NFT market cap showed a bearish crossover, with the MACD line crossing below the signal line, indicating a potential continuation of the downward trend (TradingView, 2025). The Relative Strength Index (RSI) for NFT sales volume was at 28 on February 25, 2025, suggesting that the market is in an oversold condition (CryptoQuant, 2025). Additionally, on-chain metrics reveal that the number of unique active wallets interacting with NFTs dropped to 10,000 on February 25, 2025, down from a high of 100,000 in early 2021 (Nansen, 2025). These indicators collectively point to a weakened market, with potential for further declines unless significant positive developments occur.
Regarding AI-related news, the integration of AI technologies into NFT platforms has been a growing trend. On February 22, 2025, OpenSea announced the launch of an AI-powered NFT creation tool, which led to a 5% increase in the trading volume of AI-related tokens like FET (Fetch.AI) on February 23, 2025 (OpenSea, 2025; CoinGecko, 2025). This development suggests a potential correlation between AI advancements and the NFT market, as AI tools could enhance the creation and valuation of NFTs, possibly driving renewed interest. However, the broader market sentiment towards NFTs remains negative, as evidenced by the 2% drop in major cryptocurrencies like Bitcoin and Ethereum following the announcement (CoinMarketCap, 2025). Traders should monitor how AI developments influence NFT market sentiment and trading volumes, as this could present opportunities in AI-related tokens or NFT platforms that leverage AI technologies.
In summary, the NFT market's significant decline since 2021 has led to a bearish outlook, with technical indicators and on-chain metrics supporting the potential for further downturns. The integration of AI technologies presents a possible avenue for revival, but the overall market sentiment remains cautious. Traders should keep an eye on AI-driven developments and their impact on related tokens and trading volumes to identify potential opportunities.
Milk Road
@MilkRoadDailyMaking you smarter about crypto, one laugh at a time. Trusted by 330k+ daily readers.