The rise and fall of art NFT

Art NFT became a hot topic in the Web3 industry during 2021 and 2022, and experienced a surge in popularity. That year, trading volume peaked at $2.9 billion, driven by record sales, such as the buzzer selling at $69.3 million a day.

Fast forward to Q1 2025, the market almost collapsed, with trading volume down 93% to $23.8 million, a sharp decline for active traders.

Art NFT industry traders

According to the latest report from Dappradar, meteorite rise in the ART NFTS space began with 19,615 traders, and then soared to 291,724 in 2021, an increase of 1,386%. This boom was driven by media attention and high-value sales and peaked in 2022 with 529,101111111111111111111111111111111111111111111111111111111111111111111111111111.

However, in 2023, enthusiasm gradually weakens as speculation replaces market corrections. Eventually lowered the trader to 282,683. The decline accelerated in 2024, with only 76,176 participants remaining. By the first quarter of 2025, the market almost returned to its boom level with 19,575 traders.

Dappradar said the sharp decline indicated a “reevaluation” of the Art NFT market, as “speculative enthusiasm disappeared and collectors became more acute”.

The fate of the first-class art collection

Most NFT collections that peaked in 2021 have now faded out of obscurity.

The art block, once the leader in the generative arts movement, saw its transaction volume violently drop by 95% and sales drop by 88%. Superrare, known for its unique digital artwork, saw transaction volume drop by 94% and sales drop by 98%. Meanwhile, formerly a booming market, the Foundation witnessed an almost complete collapse as its transaction volume dropped by 99.8% and sales disappeared completely.

Other platforms acquired by eBay in 2022, including Makerplace and Neworigin, have been closed or announced for closure. Overall, the average transaction volume and sales volume fell by 95% by 2024.

Despite these numbers, Dapp Radar said, “Art NFT is not dead.” Instead, the industry is only moving from “hype-driven transactions to more selective, value markets.”

“Once speculative buying and whale-driven hype intensified, the market was dramatically corrected, saving unsustainable valuations and finding a more stable basis. While volume and aggressive traders have dropped significantly, this did not mark the death of artistic NFTs, which marked their development.”