NFT Market Plunges to 2025 Bottom: Crypto Market Cap Faces Brutal 72% Correction

BlockchainTherapist · 2026-01-05T14:54:57+00:00

The NFT market suffered a significant downturn in December 2025, with total market cap collapsing to $2.5 billion, a 72% drop from January's peak. Participation metrics fell sharply, and established projects saw major price declines, while generative art projects remained stable. Sports NFTs gained traction amidst the decline.

BlockchainTherapist

2026-01-05 14:54:57

Abstract generation in progress

The NFT sector’s December 2025 performance paints a grim picture for digital asset investors. According to HashNews, the total crypto market cap in the NFT space has compressed to just $2.5 billion—marking the year’s lowest point and representing a staggering 72% contraction from January’s $9.2 billion peak.

Participation Collapse Across All Metrics

The severity of the downturn becomes evident when examining participation metrics. CryptoSlam’s data reveals a disturbing pattern: unique buyer count nosedived from 204,032 in late November to 184,302 in December’s opening week, before collapsing further to 135,120 by week three. Seller participation fared even worse, contracting by 35.6% and dipping below the 100,000 threshold for the first time.

Transaction volume mirrored this deterioration, with weekly NFT sales consistently failing to breach the $700 million mark throughout December’s first three weeks—a sharp deceleration compared to November activity. By the third week, total transaction volume had compressed to 800,000, down substantially from 1 million transactions at month’s beginning.

Blue-Chip Projects Under Pressure

Established NFT heavyweights are experiencing widespread capitulation. CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins have all recorded significant price erosion, with declines spanning 12% to 28% over the previous 30-day period. This systematic weakness suggests broad-based sentiment deterioration rather than project-specific issues.

Art Tokens Hold Ground While Sports Emergencies

In contrast, generative art-focused NFT initiatives such as Autoglyphs, Fidenza, and Chromie Squiggle have demonstrated relative resilience, posting modest gains amid the broader selloff. This divergence hints at sectoral rotation within the NFT ecosystem.

A notable development involves Sports Rollbots, which has ascended into the NFT market cap top ten rankings. Trading at a $5,800 floor price with approximately $58 million in total valuation, this project has displaced Mutant Ape Yacht Club from the elite tier, signaling shifting investor interest toward sports-themed digital collectibles.

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