From $2.9 Billion to $23.8 Million: The Rise and Fall of Art NFTs

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From $2.9 Billion to $23.8 Million: The Rise and Fall of Art NFTs

During 2021 and 2022, the discussion around Art NFTs heated up in the Web3 sector, witnessing a significant rise in interest. In that period, trading activity reached an all-time high of $2.9 billion, driven by remarkable sales like Beeple’s Everydays which sold for $69.3 million.

Moving ahead to Q1 2025, we find that the market is almost in ruins, exhibiting a staggering 93% drop in trading volume to approximately $23.8 million. Additionally, there has been a significant reduction in the number of active traders.

Traders in Art NFT Industry

Based on the most recent data from DappRadar, the Art NFT market saw a dramatic expansion from 2020 to 2022, beginning with around 19,615 traders and reaching an impressive 291,724 in 2021 – marking a staggering growth of over 1,386%. This rapid growth was fueled by increased media coverage and high-value transactions, reaching its zenith in 2022 with approximately 529,101 active traders.

By 2023, the initial excitement began to fade as speculation was replaced by market adjustments. This led to a decrease in traders down to 282,683. The decline continued at an increased pace in 2024, leaving just 76,176 individuals involved. By the first quarter of 2025, the market had almost returned to its original levels before the boom, with only 19,575 traders remaining active.

According to DappRadar, this significant drop suggests a “cautious reevaluation” in the Art NFT market as “excitement cooled down and collectors started to be more selective.

Fate of Once Top Art NFT Collections

Most of the NFT collections that peaked in 2021 have now faded into obscurity.

Art Blocks, once at the forefront of the generative art scene, has experienced a drastic decline with its trading volume dropping by an overwhelming 95%, accompanied by an 88% decrease in sales. Similarly, SuperRare, renowned for its distinctive digital artwork, is grappling with a 94% fall in trading volume and a massive 98% reduction in sales. Meanwhile, Foundation, once a bustling marketplace, has almost entirely collapsed as its trading volume plummets by 99.8%, and sales are virtually nonexistent.

On platforms like MakersPlace and KnownOrigin, which were later acquired by eBay, have either ceased operations or announced their closure. Notably, the top 20 most popular Art NFT collections from 2021 have collectively seen an average drop of approximately 95% in both trading volume and sales by the year 2024.

Contrary to the numbers suggesting otherwise, Dapp Radar maintains that Art NFTs are not extinct. Rather, it’s transitioning from a market driven by hype and quick trades to one that is increasingly discerning and focused on value.

Initially propelled by buying based on speculation and hype from large investors, the market experienced a major adjustment, discarding inflated valuations and establishing a more balanced foundation. Despite a substantial decrease in trading activity and active traders, this doesn’t foretell the end of Art NFTs; rather, it points to their development and transition towards a more mature phase.

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2025-03-31 00:55