The NFT market went through its own wild ride after exploding in 2021. Now headlines are screaming at signs of a market crash, trading volumes having dropped off a cliff and platforms like Coinbase and Shopify having significantly reduced their NFT catalogues. Or is this just a total collapse. Or is it something more—a necessary evolution in the NFT space that points the way to a more sustainable, utility-oriented future? This TDS piece explores the NFT market’s impact and current state. It shows off its evolution and serves as a guide for creators looking to develop successful, durable NFT projects.

FearlessToken.com dives headfirst into the phenomenal digital creative revolution. From tracking NFT royalty wars to showcasing fearless generative art, decoding PFP project trends, unpacking recent metaverse news and breaking down key market data into easy-to-comprehend English. For the visionary artists and leaders who are building the new cultural landscape, making sense of this shift will be key.

The Numbers Don't Lie: A Market Correction

That data combined tells a very strong story of a massive market correction. Even the Art NFT trading volume, the primary indicator of NFT and crypto market health, has cratered in a sobering free-fall. Compared to its peak in 2021, the value cratered by an astonishing 93%. That funding amount is set to plummet from $2.9 billion down to a mere $197 million in 2024. That freefall only accelerated out into the first quarter of 2025 where trading volume stood at just $23.8 million.

Likewise, the average price per Art NFT has deflated significantly. From 2021 to 2022, the average price decreased by 39%, ending at $1,251. This dramatic decline was sustained into 2023, when it dropped to $475.37 before beginning a slight rebound in 2024, when it increased to $1,273.09. Then the price dropped again in that first quarter of 2025 to $645.34. This volatility is indicative of the speculative tendencies seen within the market and the difficulty in creating sustainable value.

Maybe the most revealing stat of them all is that the number of active traders has shrunk. By 2022, active traders reached a new peak of 529,101. By the first quarter of 2025, that same number had dropped a staggering 96%, sinking to only 19,575. Sales volume has equally dropped by 81% from its high-water mark, a sign of declining sentiment and declining investment appetite. The buzz from NFTs has largely blown over. Today, the market is more figured out, settled and stable. Low trading volumes recently led giants such as Bybit, X2Y2 and Kraken to shut down their NFT-related services. At the same time, this move represents a major victory that may change the terrain.

Rarible's Perspective: A Shift Towards Utility

For those in the industry, despite the grim numbers, some view this downturn as an aspirational evolution. Rarible, one of the leading NFT marketplaces, believes that this centrifugal force is better understood as a move towards utility—not a crash. They think the market is growing up. Where speculative investments fueled much of the previous NFT hype, the attention is moving toward NFTs that provide tangible benefits and utility.

Rarible’s own NFT trading volume boom during these ensuing bear markets further validates this point of view. The platform’s growth has been nothing short of phenomenal. It gained first place in DappRadar’s Ranking and 2 million+ active users per month in 2021. That is in part because it suggests the broader market is continuing to contract. Platforms that offer exclusive value and focus on catered niches are continuing to boom. Rarible specifically focuses on visual and artistic NFTs. This creator-first focus creates value for collectors looking to buy artistic, utility-specific tokens and creators looking to sell category-specific NFTs.

Rarible’s been rolling out new tools to streamline the creator experience and further empower creators. Creator lazy minting The new lazy minting feature allows creators to mint NFTs without upfront costs. They have the ability to list their works without minting their works upfront on the marketplace and mint when a sale happens. This lowers the barrier to financial entry and allows more people to experiment with the technology. Through the new decentralized platform, creators can collect NFT royalties automatically on sales. This new feature makes sure they keep reaping the rewards from the long-term success of their works. For example, if artists receive 15% of the initial sale price every time their NFT is sold. They get a cut on any future resale, when third parties resell the artwork on the secondary market. Rarible has recently introduced the “Rarible Protocol,” an open-source multichain community-governed NFT Protocol, further emphasizing its commitment to decentralization and community involvement.

Building Sustainable NFT Projects: Focus on Value and Community

Creators, artists and teams looking to make their way through the NFT ecosystem would do well to focus on supporting sustainable projects. By providing tangible benefits and creating a vibrant community, that’s when they really win. Here are some actionable strategies to consider:

  • Focus on Real-World Value: Create NFT projects that have a greater-good benefit, speak to the community, and have a positive impact on the environment.
  • Build a Strong Community: Engage with your audience, listen to their feedback, and create a sense of belonging around your project.
  • Explore New Use Cases: Don't limit yourself to traditional art NFTs. Consider using NFTs for ticketing, gaming, real estate, or other innovative applications.

Rapidly expanding market size and widespread adoption of NFT technology across multiple industries and fields bolster a positive long-term outlook. According to the latest research, in 2023, the global NFT market size skyrocketed to approximately USD 27.31 billion. Even more excitingly, it’s projected to increase at a CAGR of 28.7% between 2024 and 2032, reaching approximately USD 264.6 billion by 2032! In 2024, one in twenty Americans (almost 9.3 million people) own NFTs, up from one percent in 2021. According to Finder.com, the Philippines has the highest rate of NFT ownership in the world. An astonishing 32% of Filipinos own NFTs — three times the global average. With China and Singapore not too far behind in the rapid ascent of NFT revenue. NFTs have made waves across sectors, from art to real estate, gaming, and now even ticketing. As an illustration, IRCTC worked with Chaincode Consulting to introduce NFT-based tickets for India’s MahaKumbh festival. As we previously reported, Coachella and OpenSea have partnered to launch dynamic NFT collections. On the other end of the spectrum, Melania Trump launched a meme coin, $MELANIA, which immediately pumped to a $2.2 billion market cap just after launch.

Minimizing Environmental Impact: Sustainable NFT Practices

The environmental footprint of NFTs is a huge factor. This is particularly so given that some blockchain platforms are stratospherically energy-intensive. There are several strategies creators can implement to minimize their carbon footprint:

Sustainable NFT Practices

  • Select Energy-Efficient Blockchain Platforms: Choose platforms that use Proof of Stake (PoS) consensus mechanisms, such as Ethereum 2.0, Tezos, Solana, and Cardano, which are more energy-efficient compared to Proof of Work (PoW) systems.
  • Optimize Digital Artwork: Minimize the computational resources required for minting and reduce the carbon footprint associated with NFT creation by optimizing digital artwork.
  • Use Layer 2 Scaling Solutions: Implement solutions like Loopring, which enable NFT transactions to be processed off-chain and then batched together before being added to the main blockchain.
  • Implement Carbon Offsetting Initiatives: Consider offsetting carbon emissions by investing in renewable energy projects or reforestation efforts.

By incorporating these sustainable practices, creators can help move the NFT space towards becoming more eco-conscious.

One thing is for sure, the NFT market is in a massive state of change. The hype has cooled, and trading volumes have plummeted. That doesn’t mean we’re seeing an unmitigated disaster. Rather, it’s a clear sign of progress—a shift towards a more mature and sustainable market that prioritizes utility, community and real-world value. Honor these principles and practice sustainability so you can create NFT projects that endure. In turn, that will equip you to play a critical role in determining how the digital future unfolds. FearlessToken.com While NFT utility is clearly an emerging trend, Fearless Token has been following NFTs closely. Our hope for the future We continue to envision NFTs as transformative tools for creation, connection, and social impact—not as digital trophies.