NFT industry in distress while activity slows down, the market collapses

As the crypto market is prepared for turbulence as followed by tariff wars, it seems that the NTF is a market in a worse position.

The trading volume decreases and the market are removed.

Once a hyper world of non-fungal tokens, which analysts once boldly designed Can Baloon at more than $ 264 billion to 2032. Years, it seems to be characterized together. The weekly volume of trading fell like Dominos, who moved the capital and pulls the market at levels that did not see from her debut 2020.

Blockcain Analytics Firma DaapraDar showing That trading volume in 2021. The vehicles were highly, hitting almost $ 3 billion.

Fast forward in the first quarter of 2025. This figure is uncertain 93% to only $ 23.8 million, because “active traders disappeared”, noticed Backchinain analyst Sara Gergela.

“This rapid growth coincided with global shifts that have launched digital platforms and pushing artists to investigate innovative methods of engagement with their audience. However, three years of NFTS has been significantly reduced.”

Sara Gherghelas

The data is supported. In 2024. years, the scope of trading dropped almost 20% from before the year before, while the total sales refused 18%. As Ghercelas put in her research in 2025. years, it was “one of the worst years of 2020. Years”

Still speculative assets

In an interview with Crypto.NEVS, the legal officer of excluding Alice Frei involved that the Regulation remains a mess because “governments remain indecisive on how to classify NFTS”.

In the United States, they are often treated as securities, which means that the platforms must walk the legal Tidak. In the UK they see more as collectibles under the Law on Intellectual Property.

“These are examples of leading countries with clear regulations of cryptical regulations. This lack of regulatory clarity creates an environment that is ripe for investors. While there is no more consistency, while there is no greater consistency, while there is no greater consistency.”

Alice Frei

Frei also stressed the deeper question: outside the scribes of cryptocurca and playing, the NFTS still “try to prove to offer real value”.

“They could have revolutionized several industries – think that they are concert tickets that prevent jumping, digital online verification cards or property saved on Block Cain. But most of the NFTS remains to a large extent greatly.”

Alice Frei

When we talk about playing, where NFTS have the most potential for the main use, their adoption also struggles, Frei stressed, reminding it Ubisoft project quartzAttempting to integrate the NRS in AAA games, it is filled with “Player resistance, forcing the company to turn it off.”

Frei notes that the players are “hesitating that the digital means feel more like currencies than a true addition to their experience.”

Turning the door

If the data was not already dark, Marsh brought more bad news: a series of market shutdown added fuel to the fire. Among them, South Korean Tech Giant LG close His LG ART Laboratory launched just three years ago at the height of the NFT Mania. The company did not share detailed reasons, only that it is “the right time to switch to our focus and explore new opportunities”.

Only a week later, X2I2 – former Openation Rival that once bragged $ 5.6 billion in life of life – also quit Its operations, stating “90% of the collection of volume of NFT trading from its top in 2021. years” and struggles to remain competitive in space.

Then he came Bibit. CRIPTO EXCHANGE, still winders from theft of $ 1.46 billion associated with hackers related to North Korea, quietly closed his platform.

Emily Bao, Head of Web3 on Babit, said that the decision will allow the company to “improve the overall user experience while concentrating on the next generation of solution on blockchain”.

In the middle of the wave of closing, Frey says the NFT market is now “feels like a swivel door.”

“Take a boring club APE IACHT, for example – once the annoying APA is dramatically sold to the fact that many NFT projects rely on hype, and that many NFT projects relying that many NFT projects rely on that many NFT projects rely on hyperci without people can’t see long-term value. “

Alice Frei

The last hope

CoinSeems to be pulled too. Although it has not officially turned off its NFT platform, all signs suggest that the focus is transferred. During the earnings, call in early 2023. year, President and COO Emilie Choi indigned that the company sees “medium and long-term opportunities” in the NFTS. But it seems that her real focus is behind the base, his block blocker network.

The coin refused to comment on their position because the NFT activity continues to decline, despite the multiple requirements of the CRIPTO.NEVS.

The Legal Officer Exitpremes that with the current path market of smaller platforms will probably not pass a storm. “Less platforms will still be turned off, leaving only a few dominant players like Rapne and blurry,” she said.

She explained that the movement was driven by two main strengths. First, the firm regulations are on the horizon, which is likely to bring the end of “wild Western days of NFTS”. Second, the playing sector can offer NRT life lines – but it is still narrow. As Frey puts, playing is perhaps NRS “” last hope “, although developers will still need to avoid” payment mechanics so that they can turn the players further. “

“The hype is over. If NFTS survives, they will need to prove to offer more than an expensive image on the shaped block,” Frei concluded.