The NFT market volume has shrunk for five consecutive quarters, and winter has arrived.

The once-popular non-fungible token (NFT) market, which had been highly sought after by cryptocurrency traders, is currently experiencing a deep pullback. According to industry data cited by Bloomberg, the trading volume in this once-booming sector has declined for the fifth consecutive quarter, with total trading volume in the second quarter of 2025 plummeting to $823 million, nearly an 80% drop compared to $4 billion in the same period last year, marking the worst performance in history.

Blue chip projects have halved, market retreat accelerates

According to monitoring by the DappRadar blockchain data platform, this quarter's trading volume has declined by another 19% compared to the previous quarter, marking the lowest point since the NFT market peak in 2022 (annual trading volume exceeding $50 billion). At that time, under endorsements from celebrities like Tom Brady, digital collectibles frequently saw six-figure trades, but the bubble has now burst. The Bitwise Blue-Chip NFT Index, which tracks top NFT projects, shows that the index has plummeted by 52% since the presidential inauguration in January.

Trump's NFT marketing effect was short-lived

Despite a brief rebound in the market after Donald Trump was elected president, the recovery of NFTs is far weaker than that of mainstream Tokens like Bitcoin. Trump himself is deeply involved in the NFT ecosystem, having launched four themed series (covering images such as "Superman costume" and "lifting Bitcoin symbol"), each set of NFTs sold out within hours. Last year, he even held a dinner specifically for NFT holders, but it failed to reverse the market downturn.

The essence of technology coexists with regulatory challenges

NFT, as a blockchain certificate of rights, is essentially a unique digital asset ownership certificate validated through smart contracts. The current market dilemma highlights three core issues:

1. Liquidity Drying Up: Continuous shrinkage in volume leads to difficulties in asset liquidation.
2. Lack of Value Anchoring: Most NFTs, apart from the leading projects, lack value support.
3. Regulatory Vacuum: A clear compliance framework for digital collectibles has not yet been established globally.

The path of industry transformation begins to take shape

In the face of the cold winter, the NFT ecosystem is trying to break through:

• Practical NFTs Rise: The increase in NFT applications with actual functions such as tickets and membership certificates.
• Layered Development: The differentiation between high-end artworks and affordable PFP (Profile Picture projects) is accelerating.
• On-chain and off-chain integration: Binding of physical rights has become a new narrative direction