The global NFT market capitalization has declined to under $1.5 billion, signaling a return to pre-2021 levels.
The downturn is attributed to a widening supply-demand imbalance, with NFT issuance projected to increase by about 25% to nearly 1.3 billion by 2025.
Total NFT sales are expected to drop 37% year-on-year to $5.6 billion, and the average sale price is forecast to fall below $100.
The market correction highlights the impact of lower issuance barriers, which have increased supply without a corresponding rise in buyer participation and spending.
This contraction is further evidenced by the exit of several prominent companies and the closure of NFT platforms, signaling a challenging period for the industry.
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