NFTs are broken, not dead

The global non-fungible token market, which was a topic of discussion on social media platforms two years ago, is at its lowest point this year, with the total market capitalization falling to approximately $2.5 billion. However, the global NFT market is not dead yet, but it is definitely dormant. In this article, we’ll explore some essential tips for reviving the NFT market.

The NFT market has declined by 70% since January 2025

Data fetched by nfnpricefloor.coman explorer of on-chain non-fungible token (NFT) collections, said the global NFT market is at its lowest point this year, with the total market value falling to around $2.5 billion in December. This figure represents a 72% decline from its early January peak of $9.2 billion. The number of NFT investors also fell from more than 204,000 in late November to nearly 135,000 by December.

In December, the global NFT market also recorded a decline in sales, with weekly sales failing to exceed $70 million during the first three weeks of the month, lower than the already weak performance in November. The global NFT market has also seen lower participation from NFT buyers and sellers, as well as decreased interest in blue-chip pools. Most of the “hot” groups have seen a double-digit percentage drop in floor prices over the past 30 days.

CryptoPunks, a globally recognized non-fungible token pool featuring a limited edition of 10,000 dotted NFTs previously created by digital asset company Larva Labs, but now run by the Infinite Node Foundation, is down 12% in the past 30 days. Bored Ape Yacht Club, an NFT collection from digital asset incubation studio Yuga Labs, was also down 28%.

Pudgy Penguins, a globally recognized non-fungible token pool featuring a fixed edition of 8,888 bird NFTs created by digital asset company Igloo Inc., fell +10.6%. Notably, it recently surpassed BAYC to become the second largest group by market capitalization. The Hypurr NFT series also saw the biggest decline among the top projects, losing 48% of its value.

This downturn is due to a combination of macroeconomic uncertainty, reduced liquidity in the broader cryptocurrency market, and a shift in focus from speculative “hype” toward projects with practical utility, such as gaming, ticketing, and digital identity. The global NFT market is declining due to declining investor interest, rising inflation and rising interest rates. But what needs to be done to revive the NFT sector?

What are NFT revival strategies?

In 2025, the NFT landscape will undergo a major shift. However, before the NFT market picks up again, some trends are set to die. Needs include low-effort, derivative pools created as pure gambling, expensive non-transferable token (NFT) mints with no substance, designed solely to fund teams up front with no accountability, and every incentive to withdraw, as well as massive supply launches and endless secondary pools that exist solely for mining. What must also die are models that cultivate societies to the point of exhaustion.

NFTs will matter again when everyone returns to what made them powerful in the first place: collectability, craftsmanship, and the magic that comes from true creativity. NFTs will become relevant again when all traders stop chasing money and start valuing the work they do. NFTs will be relevant again as we return to creators still trying. It should be noted that the teams that remain are teams that develop. They are small promises, but they are backed by a firm commitment.

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