TL;DR:
- The total capitalization of the NFT sector plummets below $1.5 billion.
- Excess supply and low demand drive average prices below $100.
- Major platforms like Nifty Gateway and brands like Nike announce their exit from the ecosystem.
The losing streak in the digital asset ecosystem continues. This Friday, the NFT market slid back to 2021 levels, erasing most of the growth accumulated in recent years. This segment’s movement occurs within a context of generalized weakness, with the total capitalization falling below the $1.5 billion mark.
In this case, the retracement was accelerated by the recent global crypto market correction, which witnessed Bitcoin and Ethereum losing their fundamental supports. CoinGecko revealed that total cryptocurrency capitalization dropped from $3.1 trillion to $2.2 trillion in just two weeks.
Factors Driving the Sector’s Contraction
Not only have external factors intervened in the current crisis, but there is also an internal imbalance between supply and demand. During 2025, the number of collectibles in circulation increased by 25%, reaching 1.3 billion digital pieces.
Despite this significant increase in asset creation, sales fell 37% annually, settling at $5.6 billion. Consequently, the average sale price sank below $100, reflecting an evident saturation of the market.
In addition to the above, the sector faces a massive withdrawal of corporate players and key platforms. Recently, Nike divested its digital studio RTFKT, while the iconic platform Nifty Gateway announced the definitive cessation of its operations by the end of February.
Finally, the closure of other projects like the social network Rodeo confirms the difficulties in scaling sustainable business models. For now, the sector is looking for a new operating floor while attempting to regain the interest of institutional and retail investors.
