NFT Market Faces Supply Surge Amid Declining Sales in 2025
According to Cointelegraph, the non-fungible token (NFT) market experienced a significant expansion in total supply in 2025, yet witnessed a notable decline in sales compared to previous years. Data from CryptoSlam reveals that the total number of NFTs in circulation increased to over 1.34 billion this year, marking a 25% rise from the one billion supply recorded in 2024. Despite this growth in supply, NFT sales fell to approximately $5.63 billion in 2025, representing a 37% decrease from the $8.9 billion achieved last year. Additionally, average sale prices dropped from $124 to $96 year-on-year.
The market dynamics indicate a scenario where supply growth has surpassed demand. While creators continued to mint new NFT pieces and platforms reduced entry barriers, buyer participation and spending did not keep pace, leading to stretched liquidity across a larger number of assets. The total number of NFTs minted and circulated has grown steadily each year, as minting tools became more affordable and accessible across major blockchains. CryptoSlam data shows that supply rose from 38 million NFTs in 2021 to over 106 million in 2022, before accelerating sharply in subsequent years as creators increased production. By 2023, the total NFT supply had already exceeded 550 million tokens, nearly doubling in 2024 to one billion.
At present, NFT supply stands at 1.34 billion tokens, reflecting a 35-fold increase, or approximately 3,400% growth over the past four years. Despite the rapid expansion in supply, the market's capacity to absorb new NFTs has weakened, with total NFT sales peaking in 2022 and trending lower since. Pricing data further underscores this shift, as the average NFT sale value fell below $100 in 2025, down from $124 in 2024, and significantly lower than the over $400 averages seen during the 2021 and 2022 boom. This combination of rising supply, reduced total sales, and shrinking ticket sizes suggests that NFTs are increasingly becoming a high-volume, low-price market, intensifying competition for buyer attention.
The NFT sector's total capitalization has steadily declined since reaching a peak of approximately $17 billion in April 2022, reflecting the unwinding of speculative excess from the previous cycle. After a partial recovery to roughly $10.8 billion in December 2024 and maintaining around $9.2 billion in January 2025, market capitalization continued to slide throughout the year, closing 2025 at approximately $2.4 billion. This downward trend highlights how lower prices and thinner liquidity have persisted as overall NFT supply continues to expand.