It’s not just a cooldown—it’s a wipeout. As global markets buckle under trade war pressures, NFTs are taking some of the hardest hits in crypto. What was once a revolution in digital ownership is now struggling for relevance.
From volume collapses to high-profile platform shutdowns, the NFT market is falling apart—fast. And this time, it’s more than just bad vibes. The numbers paint a grim picture.
Volume Down 93%—Yes, You Read That Right
Remember when NFTs were projected to be a $264B industry? That optimism’s long gone.
Today, DappRadar reports weekly NFT volume has dropped to just $23.8M, a 93% plunge from 2021 highs.
Blockchain analyst Sara Gherghelas puts it bluntly:
“Traders have disappeared. The pandemic hype is over—and what’s left is one of the weakest sectors in Web3.”
In 2024 alone:
- Volume fell 20%
- Sales dropped 18%
This isn’t just a bear market—it’s a crisis of purpose.
Still Clunky, Still Confusing, Still Under-Regulated
One of the biggest problems? Nobody agrees on what NFTs even are.
- In the U.S., they’re sometimes seen as securities
- In the U.K., they’re treated more like copyright
- Elsewhere? Total legal limbo
“The lack of consistency kills trust,” said Alice Frei of OutsetPR. “And without clear rules, real adoption won’t happen.”
Worse, even use cases with promise—like digital IDs or event tickets—haven’t taken off. And in gaming? NFTs are still viewed as cash grabs.
Just ask Ubisoft, whose NFT-powered game platform was shut down after backlash.
“Gamers don’t want JPEGs with price tags—they want better gameplay,” said Frei.
Platforms Are Falling Like Dominoes
It’s not just users leaving—entire marketplaces are shutting down:
- LG Art Lab pulled the plug
- X2Y2 went dark after its trading volume dropped 90%
- Bybit shut down NFTs following a $1.46B hack
Even the once-elite Bored Apes are down bad:
From $400,000 to $50,000. That’s not a correction—it’s a collapse.
Even Coinbase Is Quiet Now
Coinbase once hyped NFTs as the future. Now? Crickets.
Their NFT platform is still technically live, but their focus has shifted to Base, their Ethereum L2. That silence speaks volumes.
“Smaller marketplaces? They won’t survive,” Frei said. “Only giants like OpenSea might endure.”
Can Gaming Save NFTs? Maybe.
There’s one potential bright spot: Web3 gaming. But only if developers do it right—no pay-to-win, no grinding for tokenized loot.
“NFTs need to offer value—not just profit,” said Frei.
“Gaming could be the way forward, but it’s a narrow road.”
What’s Next for NFTs? Time to Prove They’re Useful
The hype era is over. NFTs can’t rely on buzz or celebrity shills anymore.
Now, they need real-world utility—or risk becoming a footnote in crypto history.
“No more overpriced JPGs,” Frei said.
“NFTs need to evolve—or disappear.”
