The NFT sector has experienced a significant decline in capitalization amid a general correction in the cryptocurrency market. Over several days in August 2025, the capitalization of NFTs dropped to $8.1 billion, according to data from NFT Price Floor. This trend was caused by a sharp drop in the cryptocurrency market, particularly Ethereum.
This is reported by Business • Media
Decline in Key Indicators of the NFT Sector
On August 13, 2025, during a rise in Bitcoin and a general upturn in digital assets, the capitalization of the NFT sector reached $9.4 billion, which was 40% higher than the figures at the end of July. However, just a few days later, a substantial decrease occurred. According to alternative calculations by CoinGecko, from August 14, the capitalization fell from $8.2 billion to $7.03 billion, a decrease of 16.6%.
At the same time, trading volumes and overall activity in the NFT market also declined, with the largest collections losing value.
Impact of Ethereum and Market Prospects
Most NFTs are created, sold, and purchased on the Ethereum network. It accounts for over half of all trading volumes in this sector. Therefore, fluctuations in the price of Ethereum’s native token, which is used to pay gas fees, directly affect the value and liquidity of NFTs.
“As can be seen, the correction in the crypto market on August 18 also impacted the threshold value of all major NFT collections:”
Despite isolated large institutional purchases, the future of the NFT sector remains uncertain. The further development of this market will largely depend on the overall situation in the cryptocurrency market and investors’ interest in digital collectible assets.