TL;DR:
- The monthly transaction volume of NFTs on the Ethereum network recorded approximately $720 million at the close of the first quarter of 2026.
- The current figure represents a fraction of the all-time high of $3.5 billion reached during the 2022 cycle.
- The network infrastructure has implemented technical improvements, including the Glamsterdam update, which reduced gas costs for smart contracts.
Analyst Tony Spark, from JRNY Crypto, maintains that so far in May, NFT volume has reached a structural floor. The expert stated that this level of activity, though reduced, could indicate the beginning of a trend reversal for the digital asset sector.
— JRNY Crypto (@JRNYcrypto) May 5, 2026
Currently, the market shows a significant contraction compared to previous years. Data from the Ethereum network indicates that monthly volume remains stable near $720 million, representing a considerable drop from the $3.5 billion peaks recorded four years ago.
According to Spark’s vision, this reduction should not necessarily be interpreted as a terminal collapse. Furthermore, the JRNY Crypto report reveals that the disappearance of incentives from platforms like Blur eliminated “wash trading” or artificial commerce. This suggests that the current volume reflects organic activity and is more honest on the part of users remaining in the ecosystem.
Market Consolidation and Technical Improvements
Technical documentation in the sector highlights that while prices were correcting, the underlying infrastructure continued to grow. Creator royalties are now enforceable at the smart contract level, and Layer 2 solutions facilitate more economically accessible transactions.
Spark believes that the current market is smaller but possesses solid foundations compared to 2021. The exit of speculative capital has opened the way for participants interested in the real utility of protocols, which presents itself as a healthier starting point for sustained growth.
The impact of the “Glamsterdam” update on Ethereum also plays a leading role. According to network data, processing capacity tripled, allowing the execution of digital assets to be more efficient. This technical environment could favor the adoption of new use cases beyond artistic collecting.
The current trend suggests that excess supply has been purged. Market data indicates that active participants are focused on building gaming ecosystems and digital identity applications, moving away from the extreme volatility that characterized the previous cycle.
