Ethereum’s NFT market is experiencing an unprecedented downturn, hitting a historic low on August 1, 2025, with only 1,127 NFTs recorded. This alarming figure illustrates a stark contrast to the boom era of 2021-2022, when NFTs surged in popularity and trading volumes soared.
Analysis from CryptoQuant highlights several factors contributing to the current decline in NFT activity, including waning investor enthusiasm, an oversaturation of low-quality collections, and a noticeable liquidity shift towards newer narratives like Layer 2 DeFi innovations and real-world asset tokenization. Despite signs of recovery in broader cryptocurrency markets since 2024, NFTs have failed to regain their previous momentum.
As Ethereum has long been regarded as the dominant platform for NFTs, the implications of this drastic decrease are profound. It could significantly impact Ethereum’s revenue generation from transaction fees and challenge the sustainability of NFT marketplaces, along with the long-term outlook for holders of these digital assets.
Interestingly, July saw a resurgence in NFT activity, as reported by DappRadar. During that month, NFT trading volume surged by 96%, reaching $530 million. However, the total number of sales saw a slight decline of 4%, totaling 5 million. The average price of an NFT more than doubled from $52 in June to $105 in July, driven by a heightened demand for established, high-value collections.
Ethereum’s Blur platform dominated trading during this period, accounting for about 80% of daily activity, largely thanks to its appeal among professional traders and lending services through its Blend platform. Meanwhile, OpenSea maintained its status as a key player in the NFT market, averaging 27,000 daily traders and offering strong cross-chain support.
Additionally, Coinbase’s Layer 2 network, Base, has quickly become a vital ecosystem for NFTs since its launch two years ago, amassing an impressive $122 million in trading volume with 6.7 million sales since January.
The contrasting trends between July’s temporary resurgence and the alarming figures seen in August highlight the volatility and uncertainty that currently characterize the NFT landscape on Ethereum.
