NFT Trading Volumes Drop By 60% Since December

Correlation Between NFTs & Crypto

In December, NFT volumes hit $1.36B, but fell 26% in January and another 50% in February, as reported by DappRadar analyst Sara Gherghelas. She attributed the decline to the correlation between NFT valuations and crypto prices. Despite signs of recovery in late 2024, momentum slowed in early 2025.

Source: DappRadar

The crypto market reached an all-time high of $3.71 trillion in December, but many gains were lost in February due to macroeconomic uncertainty. Moreover, dApp activity also declined by 8%, reaching 24M daily active wallets.

Utility & Engagement

Despite the losses, NFT activity actually increased by 6% in February, driven by growing interest in AI-powered assets. Gherghelas went on to say that NFTs with strong utility and engagement will likely drive long-term Web3 adoption.

Profile picture NFTs also led with $243M in volume, followed by gaming NFTs at $41M and sports NFTs at $7.7M. DappRadar’s January report showed that 2024 was the worst year for NFTs since 2020, with $13.7B in volume. In contrast, 2022 was the peak year, with $57.2B in trading volume.