- Ethereum continues to dominate NFT as Bitcoin falls from 1st rank to 19th.
- NFTs – Are they losing their appeal?
While Q1 didn’t go as planned, it was still a good quarter. Bitcoin [BTC] The market has experienced another unexpected change, as it failed to achieve higher highs.
The first quarter 2025 saw the sales of non-fungible (NFT) tokens drop by 63% compared to last year.
The bitcoin-based NFT market also suffered a significant drop, dropping from $1.4billion in the first quarter 2024 to just $291m in 2025. This is a drop of 79%.
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.
Do these results indicate that Bitcoin has lost its competitive edge in NFT? Does this mean that Ethereum has a greater advantage now?
Declining NFT sales volume signals diminishing appeal
AMBCrypto provides an analysis of this cryptocurrency. NFT marketplace Ethereum’s dominance of the total volume sold across several timeframes is evident.
Ethereum’s monthly sales volume was still strong at $142,000,000 USD, despite a 58% retracement.
Bitcoin has fallen from the 2nd position to 19th, a drop of 80% in the NFT volume.
This significant retracement is in line with the decline of total NFTs across all blockchains. At the time this article was written, the NFTs had fallen by 43.17%.
This is the lowest month ever for NFTs, which contributes to the quarterly decline of 63%.
Source: CryptoSlam.IO
Takeaway: Once considered an innovative digital asset class (NFTs), non-fungible tokens are currently facing a substantial market decline.
Research The fact that NFTs are rarely traded in 98% of the cases is shown. Only 0.2% of NFTs dropped have proven profitable. In fact, most NFTs will lose more than 50% of their original value in a matter of days.
AMBCrypto notes that NFTs have a speculative character, which also presents significant risks.
Collectibles such as Beanie BabiesThe value of sank sharply after the initial boom in their popularity.
Ethereum continues to dominate the market despite a decline
Ethereum NFT sales in January 2025 accounted for approximately 338 millions dollars, which is around 50% of total market volume.
Ethereum, however, experienced a 23.84 % retracement of sales from December to January.
The performance of Ethereum in the first quarter has been also analyzed. predominantly bearishWith a drawdown of 45%, is currently testing the crucial $1,831 zone. Price point $2,000 has been a major resistance area.
Source: TradingView ETH/USDT
Crypto enthusiasts can be influenced by this. advocates The price target for Ethereum has been revised 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.
The bearish mood around Ethereum could increase if this trend continues. The relative strength of Ethereum could be affected. BitcoinIts competitive advantage is being eroded.
“This article is not financial advice.”
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Source: ambcrypto.com
