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The global non-fungible token art market has been experiencing an up-and-down swing since its inception in 2020, evolving from niche enthusiasm to mainstream frenzy before facing a brutal steep decline. An in-depth analysis has revealed that the NFT art market has fallen by over 90%, with its trading volume falling from $2.9 billion in 2021 to just $23.8 million as of Q1 2025. In this article, we shall discuss what went wrong.
NFT Art Sales Fall In Q1, Down +90% Since 2021
On March 27, 2025, DappRadar, the digital asset platform providing a comprehensive hub for discovering, tracking, and managing decentralized applications, NFTs, DeFi projects, and other web3 assets while offering data and insights to users and industry partners, shared a report about the NFT art market. The data analytics report found that the trading sales volume for the NFT Art market has plummeted by more than 90%, falling from a record high of $2.9 billion to $23.8 million in Q1 2025.
📉 In 2021, Art NFTs hit $2.9B in volume. This quarter? Just $23.8M.
From Beeple’s $69M masterpiece to a 93% crash in trades – what happened to the NFT art boom?
We dug into the data, and it’s more than just a hype cycle.Read the full breakdown 👇
— DappRadar (@DappRadar) March 28, 2025
The non-fungible token art market debuted in early 2020, with trading volume reaching $28.7 million and over 101,000 sales on Ethereum. As the pioneering blockchain network in the NFT space, Ethereum laid the foundation for digital art to thrive. The NFT art market reached a huge milestone in November 2020, shortly after the launch of Art Blocks. This art collection propelled generative art into the spotlight and attracted artists and collectors, marking a turning point in the digital art landscape.
In late 2021 and early 2022, the NFT art market surged in popularity, rapidly becoming one of the most discussed topics in the NFT industry. During this NFT market bull run, the art sector provided digital artists unprecedented creative and financial independence, creating a new digital economy and pushing the global NFT market valuations to extraordinary heights. For the first time, the traditional art market captured mainstream attention and interest.
The rapid growth of the NFT art market coincided with global shifts driven by the COVID-19 pandemic, which accelerated the adoption of digital platforms and pushed NFT artists to explore innovative methods of engaging with their audiences. In late 2021, Art NFTs gained massive traction, with trading volume skyrocketing by +10,000% year-over-year to reach $2.9 billion. Earlier in 2022, the NFT art market saw some NFTs selling for eye-watering sums of dollars.
The most expensive and iconic NFTs sold during the 2021-2022 historic NFT marker bull run included “Everydays: The First 5000 Days” by Beeple, which Sold for $69.3 million, “HUMAN ONE” by Beeple, Sold for $28.9 million, “Right-Click and Save As Guy” by XCOPY that Sold for $7.09 million, “Crossroad” by Beeple that Sold for $6.6 million, and Ringers #109” by Dmitri Cherniak that Sold for $6.93 million.
From mid-2022, the art NFT market lost its initial momentum, with trading volume dropping by 19% year-over-year to $2.38 billion despite a 31% increase in sales count to 1.91 million. This divergence between trading volume and sales count indicated a significant drop in average NFT floor prices as the hype began to fade. The downturn continued in 2023 and 2024, with art trading volume plummeting 93% from its all-time high to just $197 million.
Three years later, the hype around Art NFTs has plunged significantly. In Q1,2025, the trading volume for Art NFTs dropped even further to just $23.8 million. Even though the year isn’t over, this figure indicates that Art NFTs are still struggling to regain relevance. The drastic decline for Art NFTs from the golden era of 2021-2022 reflects waning enthusiasm and diminishing investment interest. The plunge also suggests that market sentiment can change, leaving any landscape in a state of uncertainty.
What Went Wrong?
Based on DappRadar’s findings, the NFT art market experienced high demand and fewer sellers in 2022, creating intense competition that drove up floor prices and trading sales volume. In 2022, the ratio became more balanced, with increased trading and flipping activity as speculation grew. In 2023, buyers and sellers balanced, signaling a more mature and less speculative market.
Unfortunately, a sharp drop in buyers alongside steady seller numbers last year highlighted dwindling demand and increased efforts to liquidate assets. In the past three months, the market has experienced a cautious but stable environment, with a small but consistent community of dedicated collectors remaining active. As the NFT industry evolves, Art NFTs are poised to thrive as a refined and resilient segment of the broader NFT ecosystem.
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