The non-fungible token (NFT) market has contracted sharply, with its total market capitalization falling below $1.5 billion, a level not seen since before the 2021 boom. Data indicates a significant oversupply, with 1.3 billion NFTs now in circulation as sales value plunges, while high-profile corporate exits like Nike’s RTFKT sale and the shutdown of Nifty Gateway underscore the sector’s downturn.
The non-fungible token market has significantly declined, with its total market capitalization shrinking to under $1.5 billion. This retreat aligns with a broader downturn across the cryptocurrency sector.
The market is experiencing a pronounced imbalance between supply and buyer demand. CryptoSlam data shows the number of NFTs in circulation rose 25% to 1.3 billion in 2025, but total sales value fell 37% year-over-year to $5.6 billion.
This contraction has been accompanied by several major corporate exits. Notable closures include Nike’s discreet sale of RTFKT and the shutdown of the early platform Nifty Gateway.
The current market volatility presents both challenges and potential opportunities. While plummeting prices and sales volumes are discouraging for some, the reset may create openings for new entrants.
