The NFT market falls below $1.5 billion, revealing a structural crisis in the industry

MissedAirdropBro · 2026-02-22T14:02:38+00:00

The global NFT market has declined below $1.5 billion, reverting to pre-boom levels as of February 2026. An analysis indicates that this contraction results from a growing gap between NFT supply and demand, leading to oversaturation and decreased market value.

MissedAirdropBro

2026-02-22 14:02:38

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The total market value of the global NFT market has fallen below $1.5 billion, reverting to pre-2021 boom levels. As of February 2026, the entire industry is facing this market contraction phase, and there is growing concern among market participants. According to analysis by PA News, this adjustment is a result of the widening gap between NFT supply and demand.

Significant Gap Between Increased Supply and Decreased Demand

Market data from 2025 shows that the number of NFTs in circulation increased by 25%, reaching nearly 1.3 billion, while total sales experienced a substantial 37% decline, dropping to $5.6 billion. The average price has fallen below $100, indicating serious price pressure across the entire NFT market.

This phenomenon suggests that while the barriers to NFT issuance have significantly lowered, buyer engagement and spending are struggling to keep pace, revealing a structural imbalance in the industry. The increase in supply has saturated the market, leading to a vicious cycle where the rarity and value of individual NFTs decline accordingly.

Industry-Wide Impact of Withdrawals and Contraction

The downturn in the NFT market is also reflected in the withdrawal of several well-known companies from their projects and the closure of platforms. Market self-correction mechanisms are beginning to take effect, gradually phasing out projects and business models lacking sustainability. Moving forward, the rebuilding of the NFT market will require the development of more practical and high-value use cases.

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