NFT Market Faces Significant Downturn
NFT trading volumes have fallen to their weakest level of the year as the global crypto market attempts to regain bullish momentum. In November, NFT sales reportedly generated around $320 million, which is barely half of October’s $629 million and more than 66% below the peak of over $900 million recorded in January. This significant dip illustrates the considerable retreat of the digital collectibles market from the frenzy that characterized the beginning of 2025. The current slump also marks the slowest month since September 2024, when volumes touched $312 million.
The slowdown has extended into December. In the first seven days of the month, NFT collections recorded only $62 million in sales, representing the softest weekly reading of 2025. This indicates that buyers are remaining cautious as the year draws to a close. Despite this broader trend, NFT sales volume saw a jump of 41% in the last 24 hours, reaching $9.63 million, according to CryptoSlam data.
NFT Valuations and Key Collections Experience Declines
NFT valuations continue to reset across nearly every major collection. The sector’s market cap is currently around $3.06 billion, a sharp decrease from the $9.2 billion posted in January, according to CoinGecko data. Specific blue-chip collections have seen notable drops: CryptoPunks have slipped 12% over the past month, Bored Ape Yacht Club is down 8.5%, and Pudgy Penguins have dropped 10.6%. Art-focused NFTs have also been affected, with Chromie Squiggle down 5.6%, Fidenza down 14.6%, Moonbirds down nearly 18%, and Mutant Ape Yacht Club down 10% in the last month. Hypurr experienced the steepest fall among the top collections, shedding almost half its value to trade around $12,626.
🚨 NFT sales just hit their lowest monthly level of the year. November recorded $320M in volume, down from $629M in October and more than 66% below January’s market cap peak. It is the weakest month since September 2024, when sales reached $312M.
Emerging Winners and Broader Crypto Market Fatigue
Amidst the widespread losses, some NFT projects have shown resilience and strong performance. Infinex Patrons climbed 10% over the past 30 days, while Autoglyphs surged 20.9%, marking the strongest performance among the top-10 collections. This suggests that liquidity is not disappearing uniformly but is consolidating around specific narratives. In a notable surge, the fwogs NFT collection, running on Ether, recorded a spike of 1,337% in sales over the last 24 hours, with transactions increasing by 1,733% to reach 2,072. CryptoPunks also saw a significant spike, with sales jumping by 618% and transactions increasing by 600%.
The slowdown in the NFT market mirrors a broader fatigue that has swept the crypto markets. Bitcoin, the original cryptocurrency, is on track for its first negative year since 2022, currently down by 4% on a year-to-date basis and trading at an average price of $90,510 at press time. Bitcoin is also down by almost 12% over the last 30 days.
Factors Influencing Crypto Market Sentiment
Bearish sentiments in the crypto market have been triggered by uncertainty surrounding interest rate cuts and trade tensions. A significant liquidation event in October, which erased more than $19 billion in leveraged positions, also played a crucial role in the current market scenario. Bitcoin had surged above $126,000 in early October, riding a rally that was amplified by the election of President Donald Trump. However, the market experienced a collapse days later after the administration unveiled new tariffs on Chinese imports. Since then, BTC has struggled to regain momentum, experiencing its worst monthly performance in over three years with a more than 20% decline in November.