The post NFT Market Faces Historic Oversupply Crisis – 1.34 Billion Tokens Meet Sharp Decline in Sales appeared on BitcoinEthereumNews.com.

At the end of 2025, the non-fungible token (NFT) market revealed a very basic disparity between NFT supply and NFT demand. Although there was a tremendous increase in NFT supply, there was an equally large decrease in buyer interest. This has created the most troubling time for analysts in the NFT market since being introduced to mainstream audiences. The Numbers Behind the Crisis According to CryptoSlam, there were 1.34 billion NFTs circulating by 2025, an increase of 25% compared to 2024. There has been an incredible increase of 3,400% in just 4 years from only 38 million NFTs available in 2021. The exponential growth in supply took place while demand for NFTs was rapidly declining. In 2025, total NFT sales dropped by 37%, down from $8.9 billion in 2024 to $5.63 billion for the year. The average sale price of an NFT dropped to $96 for 2025 compared to $124 for 2024 and well below the $400 average during the peak period of 2021 and 2022. The NFT market capitalization shows a similar decline over the same one-year period (2025), where it decreased significantly from $9.2 billion in January 2025 to $2.4 billion dollars by December 2025 for approximately a 74% drop in value in just 12 months that is also the lowest amount that has ever been recorded since this particular market has experienced exponential growth. Understanding Supply and Demand Imbalance The problem from a basic perspective is not necessarily just oversupply but a crisis of confidence and utility. While creators continued creating new pieces at faster-rates and platforms lowered the barriers to entry, the participation from buyers couldn’t keep pace. The result is a market in which liquidity has been stretched thin on an exponentially larger number of assets. The shift represents a more significant change in how…

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Filed under: News - @ January 1, 2026 11:06 pm