- Ethereum maintains NFT dominance as Bitcoin drops to 19th rank.
- Are NFTs losing their appeal?
Q1 is coming to an end, and while the quarter didn’t unfold as many anticipated, especially with Bitcoin [BTC] failing to post higher highs, there was another surprising shift in the market.
Sales of non-fungible tokens (NFTs) saw a sharp decline in the first quarter of 2025, dropping by 63% year-over-year.
Bitcoin-based NFT sales also took a major hit, falling to $291 million in 2025, marking a 79% drop from $1.4 billion in the first quarter of 2024.
In contrast, Ethereum [ETH] continues to dominate, showing a 22% weekly increase in trading volume – quite the opposite of Bitcoin’s 47% decline over the same period.
Does this indicate that Bitcoin is losing its edge in the NFT space? Could this give Ethereum a further advantage?
Declining NFT sales volume signals diminishing appeal
AMBCrypto’s analysis of the NFT marketplace indicates that Ethereum has maintained its dominance in total sales volume across multiple timeframes.
Despite a 58% monthly retracement, Ethereum’s sales volume remained robust at $142 million USD.
In contrast, Bitcoin, which initially held the second position, has now slipped to the 19th rank, reflecting an 80% contraction in NFT sales volume.
This significant retracement aligns with the overall decline in total NFT sales across all blockchains, which have seen a 43.17% reduction at the time of this writing.
This sharp contraction marks the worst month for NFT sales, contributing to the 63% quarterly pullback.
Source: CryptoSlam.IO
Key takeaway: Non-fungible tokens (NFTs), once considered a groundbreaking digital asset class, are now facing a significant market decline.
Research shows that 98% of NFT collections are barely traded. In fact, only 0.2% of NFT drops have been profitable. Most NFTs lose over 50% of their value within days.
As noted by AMBCrypto, the speculative nature of NFTs also presents notable investment risks.
Historical parallels can be drawn with collectibles like Beanie Babies, which saw a sharp decline in value after their initial surge in popularity.
Ethereum’s continued dominance amidst market decline
In January 2025, Ethereum’s NFT sales captured around 50% of the total market volume, totaling approximately $338 million.
However, Ethereum experienced a 23.84% retracement in sales volume from December 2024 to January 2025.
Ethereum’s market performance in Q1 has also been predominantly bearish, with a 45% drawdown, currently testing the critical $1,831 support zone. The $2,000 price point has become a significant resistance zone.
Source: TradingView (ETH/USDT)
Consequently, even staunch crypto advocates have revised their price targets for Ethereum in 2025, slashing expectations by 60%.
Despite ETH maintaining its dominance in the NFT sector, a 58% monthly contraction in NFT sales volume has failed to absorb sell-side liquidity – a key market driver in previous bullish phases.
If this trend persists, the prevailing bearish sentiment around Ethereum may intensify. This could undermine its relative strength over Bitcoin, diminishing its competitive edge.
