According to DappRadar figures NFT trading volume plummeted 63% between December and recent data reports. The NFT industry faced its worst performance since 2020 during 2024 when sales hit $13.7 billion yet fewer than 50 million deals were completed.

The NFT market started going downhill when 2025 arrived despite its projected recovery period. The total NFT trading volume in December claimed $1.36 billion. Sara Gherghelas from DappRadar reported on March 6 that NFT trading volume dropped 26% in January and a total 50% in February.

According to Gherghelas the NFT market showed positive signs during recent months but experienced a slowdown after this year started. She reported that NFT market values dropped because they depend on crypto price actions.

Bitcoin Hits New Record

The digital asset market reached its highest point ever of $3.71 trillion in value on December 9 2024 because key cryptocurrencies produced major price increases. Bitcoin hit $109,000 on January 20 to set a new value record that it established on December 17. 

The market returns absorbed most of their upsizing when Trump introduced international trade barriers that raised macroeconomic concerns. In February dApp platforms recorded an 8% usage decrease and users dropped to 24 million which matched the NFT adverse period.

The NFT marketplace saw different sectors experience updated growth during this period. In February, DappRadar observed 3.5 million people use NFT platforms as their number of users increased by 6%. AI-powered NFTs gained popularity among users and caused this increase in market activity.

NFT Market Needs Innovation

According to Gherghelas digital assets that use artificial intelligence in NFT projects now function better and engage users in new ways. She explained that trading activities may change over time but real-world connected NFTs with active users will drive the future development of Web3.Profile picture non-fungible tokens generated $243 million through 76,385 sales, which remained the preferred non-fungible tokens type. 

The non-fungible tokens segment for digital games enabled $41 million of trading through its 421,853 sales but remained behind profile pictures NFTs that earned $243 million from 76,385 transactions According to DappRadar’s January findings 2024 represented the worst year for non-fungible tokens activity since 2020 because investors faced higher token fluctuations and raised costs. 

Never before in 2020 did NFT sales achieve such heights because in 2022 trading volumes hit $57.2 billion while the total number of transactions went past 121.7 million. The non-fungible tokens sector needs projects offering practical benefits and AI technology to maintain market stability into the future.