- Ethereum maintains NFT dominance as Bitcoin drops to nineteenth rank.
- Are NFTs dropping their attraction?
Q1 is coming to an finish, and whereas the quarter didn’t unfold as many anticipated, particularly with Bitcoin [BTC] failing to put up larger highs, there was one other stunning shift available in the market.
Gross sales of non-fungible tokens (NFTs) noticed a pointy decline within the first quarter of 2025, dropping by 63% year-over-year.
Bitcoin-based NFT gross sales additionally took a serious hit, falling to $291 million in 2025, marking a 79% drop from $1.4 billion within the first quarter of 2024.
In distinction, Ethereum [ETH] continues to dominate, exhibiting a 22% weekly enhance in buying and selling quantity – fairly the alternative of Bitcoin’s 47% decline over the identical interval.
Does this point out that Bitcoin is dropping its edge within the NFT area? Might this give Ethereum an extra benefit?
Declining NFT gross sales quantity alerts diminishing attraction
AMBCrypto’s evaluation of the NFT marketplace signifies that Ethereum has maintained its dominance in whole gross sales quantity throughout a number of timeframes.
Regardless of a 58% month-to-month retracement, Ethereum’s gross sales quantity remained strong at $142 million USD.
In distinction, Bitcoin, which initially held the second place, has now slipped to the nineteenth rank, reflecting an 80% contraction in NFT gross sales quantity.
This important retracement aligns with the general decline in whole NFT gross sales throughout all blockchains, which have seen a 43.17% discount on the time of this writing.
This sharp contraction marks the worst month for NFT gross sales, contributing to the 63% quarterly pullback.
Supply: CryptoSlam.IO
Key takeaway: Non-fungible tokens (NFTs), as soon as thought-about a groundbreaking digital asset class, are actually going through a big market decline.
Research exhibits that 98% of NFT collections are barely traded. In reality, solely 0.2% of NFT drops have been worthwhile. Most NFTs lose over 50% of their worth inside days.
As famous by AMBCrypto, the speculative nature of NFTs additionally presents notable funding dangers.
Historic parallels may be drawn with collectibles like Beanie Babies, which noticed a pointy decline in worth after their preliminary surge in recognition.
Ethereum’s continued dominance amidst market decline
In January 2025, Ethereum’s NFT gross sales captured round 50% of the entire market quantity, totaling roughly $338 million.
Nonetheless, Ethereum skilled a 23.84% retracement in gross sales quantity from December 2024 to January 2025.
Ethereum’s market efficiency in Q1 has additionally been predominantly bearish, with a forty five% drawdown, presently testing the crucial $1,831 assist zone. The $2,000 worth level has turn out to be a big resistance zone.
Supply: TradingView (ETH/USDT)
Consequently, even staunch crypto advocates have revised their worth targets for Ethereum in 2025, slashing expectations by 60%.
Regardless of ETH sustaining its dominance within the NFT sector, a 58% month-to-month contraction in NFT gross sales quantity has failed to soak up sell-side liquidity – a key market driver in earlier bullish phases.
If this development persists, the prevailing bearish sentiment round Ethereum might intensify. This might undermine its relative power over Bitcoin, diminishing its aggressive edge.
