NFT Market Downturn: Polygon Surges as Sales Plummet
Jun 24
2 min read
The NFT market has recently experienced a significant downturn, with overall sales plummeting. Despite this decline, certain collections like Pudgy Penguins and Milady Maker have shown remarkable resilience and growth. Notably, Polygon has emerged as a strong contender, surpassing Ethereum in sales volume, indicating a shift in the blockchain landscape for NFTs.
NFT Market Faces Steep Decline
The non-fungible token (NFT) market has seen a substantial drop in sales, with total volume falling by 18.43% to $116.9 million. This marks a sharp contrast to previous periods of strong performance. The first quarter of 2025 alone saw a 63% year-over-year plunge in NFT sales, from $4.1 billion in Q1 2024 to $1.5 billion.
Total NFT sales volume decreased by 18.43% to $116.9 million.
Q1 2025 sales were down 63% year-over-year, totaling $1.5 billion.
March 2025 experienced the steepest decline, with sales falling 76% to $373 million.
Resilient Collections Defy Downturn
Despite the broader market slump, several NFT collections have managed to not only withstand the downturn but also achieve significant growth. Pudgy Penguins, Doodles, and Milady Maker are notable examples.
Pudgy Penguins: Recorded $72 million in Q1 2025 sales, a 13% increase from Q1 2024.
Doodles: Sales jumped to $32 million in Q1 2025, up from $22.6 million in Q1 2024, partly due to a McDonald's partnership.
Milady Maker: Saw a 58% increase in sales volume, gaining traction with its anime-themed project.
In contrast, some previously dominant collections experienced significant drops:
Collection | Q1 2024 Sales | Q1 2025 Sales | Percentage Change |
|---|---|---|---|
CryptoPunks | $114 million | $60 million | -47% |
BAYC | $78 million | $29.8 million | -61% |
Polygon Outpaces Ethereum in Sales
A significant development in the NFT market is Polygon's rise, which has now surpassed Ethereum in sales volume. Polygon surged into second place with $23.3 million in sales, a 24.98% increase, while Ethereum fell to third place with $20.4 million, a 32.06% decline.
Polygon's sales increased by 24.98% to $23.3 million.
Ethereum's sales decreased by 32.06% to $20.4 million.
Immutable retained its top position with $28.3 million in sales, despite a 32.23% decline.
NFT Lending Market Plummets
The NFT lending industry has also been severely impacted, with volumes plummeting 95% from their peak in January 2024. Lending volume dropped from $1 billion in January 2024 to just $50 million in May 2025. This decline is attributed to a 90% drop in borrowers and a 78% decrease in lenders, alongside a significant reduction in average loan amounts.
NFT lending volume fell 95% from $1 billion (January 2024) to $50 million (May 2025).
Number of borrowers decreased by 90%.
Average loan amount dropped from $22,000 to $4,000.
Bitcoin NFTs Show Mixed Trends
While the overall NFT market declined, NFTs built on Bitcoin saw their average price increase to $633.24 in Q1 2025. However, Bitcoin-based NFT sales volume sharply declined by 79% to $291 million in Q1 2025, down from $1.4 billion in Q1 2024.
Sources
NFT sales plunge 63% in Q1, but Pudgy Penguins, Doodles buck trend, Cointelegraph.
NFT Market Update: Weekly Sales Dip Amid Bitcoin and Solana Gains, OKX.
NFT Lending Volume Plummets 95% From 2024 High: DappRadar, The Defiant.
NFT trading volume has tumbled 63% since December, Cointelegraph.
NFT sales drop 18% to US$116.9m as Polygon outpaces Ethereum, Dimsum Daily.