The total market value of the global non-fungible token (NFT) sector fell below 1.5 billion dollars, returning to levels before the rapid expansion in 2021. This decline occurred simultaneously with the general crypto market crash over the last two weeks. According to CoinGecko data, the total crypto market value dropped from 3.1 trillion dollars on January 23 to 2.2 trillion on Friday. Bitcoin (BTC) fell from 89,000 dollars to 65,000 dollars, Ether (ETH) from 3,000 dollars to 1,800 dollars. According to CryptoSlam data, BTC and ETH are the top networks for NFTs in 30-day trading volume.
Main Reasons for the NFT Market Cap Crash
The decline in market value was affected by supply-demand imbalance. According to CryptoSlam data, the number of circulating NFTs rose to 1.3 billion in 2025, a 25% increase compared to 2024, but annual sales decreased by 37% to 5.6 billion dollars, and the average sale price fell below 100 dollars.
Nike RTFKT Sale and High-Profile Exits
High-profile exits also increased the pressure: Nike sold the RTFKT studio on January 7; Nifty Gateway announced it will close on February 23, and the Rodeo social NFT platform will cease operations in March. These developments shook investor confidence, further reducing liquidity.
Current Technical Analysis of ETH Price
ETH is currently trading at 1,936 dollars, down 6.30% in 24 hours. RSI at 24.45 is in oversold territory. 20 EMA at 2,563 dollars, the trend is downward, and Supertrend is giving a bear signal. Click for detailed ETH analysis.
| Level | Price | Score | Distance | Sources |
|---|---|---|---|---|
| S1 Support | 1,826.83 | 84/100 ⭐ | -5.65% | POC, Prev Day Close |
| S2 Support | 1,658.61 | 69/100 ⭐ | -14.33% | S2, Fibo |
| R1 Resistance | 1,998.71 | 72/100 ⭐ | +3.23% | Fibo 0.114, MACD |
| R2 Resistance | 2,218.80 | 66/100 ⭐ | +14.60% | Fibo 0.214, R2 |
Bitcoin Falls Below 70,000 Dollars, Hitting NFTs
Bitcoin fell below 70,000 dollars for the first time since November 6, 2024. MicroStrategy CEO Phong stated that if BTC falls below its 76,000 dollar averages, debt payments will become difficult, and in the worst case, it could drop as low as 8,000 dollars. This increased BTC futures volume while pressuring NFT networks.
ETH Support Levels Critical for NFT Investors
ETH’s strong S1 support at 1,827 dollars is a turning point for the NFT ecosystem. If broken, there’s a risk of slipping to S2 at 1,659 dollars. The 37% drop in NFT sales most affected ETH-based collections (CryptoPunks, Bored Apes). Monitor the ETH spot market.
Future Risk Analysis of the NFT Sector
- If supply surplus continues, the average price could drop to 50 dollars.
- Without BTC/ETH recovery, NFT volume will remain low.
- Regulations and Web3 integrations are a source of hope.
Source: https://en.coinotag.com/nft-market-cap-below-15-billion-eth-collapse
