NFT Market Faces Steep Decline, Polygon Surpasses Ethereum in Sales
3 days ago
3 min read
The NFT market has experienced a significant downturn, with sales plummeting across the board. Despite this overall decline, some collections like Pudgy Penguins and Milady Maker have defied the trend, showing resilience. Notably, Polygon has emerged as a strong contender, surpassing Ethereum in recent sales volumes.
NFT Market Plunges Amidst Broader Crypto Downturn
The non-fungible token (NFT) market has faced a challenging period, with sales volumes experiencing a sharp decline. In the first quarter of 2025, total NFT sales dropped by 63% year-over-year, totaling $1.5 billion compared to $4.1 billion in the same period of 2024. March alone saw a 76% decrease in sales. This downturn is largely attributed to a broader crypto market slump and macroeconomic uncertainties.
Key Takeaways
NFT sales plunged 63% in Q1 2025 compared to Q1 2024.
Polygon has overtaken Ethereum in recent NFT sales volume.
Pudgy Penguins, Doodles, and Milady Maker defied the market downturn with increased sales.
Bitcoin-based NFTs saw an increase in average price despite a significant drop in sales volume.
Resilient Collections Defy the Trend
While the majority of the NFT market struggled, a few collections managed to buck the trend and even thrive. Pudgy Penguins recorded $72 million in sales in Q1 2025, a 13% increase from the previous year. Doodles also saw a significant jump, with sales rising to $32 million, possibly due to a partnership with McDonald's. Milady Maker, an Ethereum-based collection, experienced the highest percentage increase among top collections, with a 58% rise in sales volume.
Conversely, once-dominant collections like CryptoPunks and Bored Ape Yacht Club (BAYC) saw substantial declines. CryptoPunks sales fell by 47% to $60 million, while BAYC experienced an even steeper 61% drop, with sales reaching only $29.8 million.
Polygon Outpaces Ethereum in Recent Sales
In a notable shift, Polygon has surpassed Ethereum in recent NFT sales volume. According to data from CryptoSlam, Polygon surged into second place with $23.3 million in sales, a 24.98% increase. Ethereum, traditionally the dominant blockchain for NFTs, fell to third place with $20.4 million, marking a 32.06% decline. Immutable retained its top position with $28.3 million in sales, despite a 32.23% decline from the prior week.
Bitcoin NFTs See Price Increase Amidst Sales Drop
Despite the overall market decline, NFTs built on Bitcoin saw their average price increase in Q1 2025, reaching $633.24. This is a significant rise from an average price of $63.45 in 2023 and $559.05 in 2024. However, the total sales volume for Bitcoin-based NFTs sharply declined by 79% to $291 million in 2025, down from $1.4 billion in Q1 2024.
Buyer and Seller Activity Trends
Despite the overall dip in sales, buyer and seller activity in the NFT market showed an increase. Buyer interest rose by 31.48%, and seller activity climbed by 25.86%. This suggests that while sales volumes are down, engagement within the market remains vibrant, with new and existing participants actively trading. The increasing accessibility of NFTs across multiple blockchains and the appeal of emerging collections may contribute to this sustained activity.
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 trading volume has tumbled 63% since December, Cointelegraph.
NFT sales drop 18% to US$116.9m as Polygon outpaces Ethereum, Dimsum Daily.
NFT trading volume last year was the worst since 2020: DappRadar, The Block.