NFT Market Falls 12% in March as Ethereum Sales Drop 59%

According to the latest Binance research, the NFT market saw a sharp drop in March 2025. Total sales volume across the top 10 blockchains fell by 12.4%, signaling weaker buyer interest. Only two chains—Immutable and Panini—bucked the trend. 

The number of unique NFT buyers dropped to its lowest level since October 2023, pointing to a slowdown caused by global economic pressures.

Are NFTs Dying Out in 2025?

Ethereum-based NFTs suffered the most. Sales on the network dropped 59.3%, with only CryptoPunks recording any growth among the top 20 collections. Bored Ape Yacht Club and Pudgy Penguins both posted losses of more than 50%.

Panini saw a strong surge in activity. Its digital collectibles jumped 259.2% in sales, placing it among the top 10 NFT blockchains. 

With a long legacy in physical collectibles, Panini’s digital offering uses blockchain to validate asset ownership.

Despite the broader slowdown, brands and creators continue to explore new NFT concepts. Azuki collaborated with artist Michael Lau to launch a physical-backed NFT. 

The Sandbox teamed up with Jurassic World to bring licensed dinosaurs into its metaverse experience.

Still, market contraction has led to several closures. Bybit announced it is shutting down its NFT Marketplace, Inscription Marketplace, and IDO platform. 

X2Y2 is also winding down after handling $5.6 billion in trading volume. Activity has dropped by 90% since NFTs peaked in 2021, pushing many platforms out of the market.

“Marketplaces live or die by network effects. We fought tooth and nail to be #1, but after three years, it’s clear it’s time to move on. The NFT chapter taught us a lot—most of all, that lasting value beats chasing trends. That lesson’s why we’re drawing a line here, not a pause or a maybe, but a full stop on X2Y2 as we knew it,” X2Y2 wrote in its announcement.

Also, Kraken ended its NFT operations in February, shifting focus to other business areas.

Meanwhile, NFT-related tokens continue to fall. Magic Eden has lost 94% of its value since its launch four months ago. Pudgy Penguins (PENGU) has declined nearly 30% over the past month, despite its Coinbase listing. 

Ethereum’s revenue has also taken a hit. Transaction fee income has dropped by 95% since late 2021, driven by falling NFT activity and fewer contributions from Layer 2 networks. 

This has been reflected in Ethereum’s price, as the altcoin declined by 58.8% from its all-time high. Q1 2025 marked its worst quarter since 2018.