NFTs Are Collapsing, Bitcoin Reigns Over The Ruins

NFT

MARKET_WATCH

A Paradoxical Market Shift

May brought a mixed bag for the NFT world. While Bitcoin posted impressive gains in NFT volume, the overall sector entered a notable decline. This contrast shows that even a strong flagship asset can’t always uplift the broader ecosystem.

Key Highlights:

NFT sales dropped by 21% in May, despite a 16.45% increase in buyers.

The market is now led more by standout collections than by the blockchains themselves.

Bitcoin and Avalanche defied the trend with notable growth.

Sales Down, Buyers Up

In a paradoxical twist, the NFT market saw:

$474 million in sales — down 21.25% from April.

A growing number of participants:

Buyers: +16.45%

Sellers: +1.57%

Even dominant platforms like Ethereum saw a decline, with sales dropping by nearly 21% to around $140 million.

Polygon Falters, Bitcoin Surges

Efforts to diversify failed to counteract the downturn:

Polygon volume plummeted by 47.38%, revealing structural rather than cyclical issues.

Conversely:

Bitcoin rose by 20.16% in NFT volumes, hitting $74.5 million — an impressive feat for a newcomer.

Avalanche soared over 1200%, primarily due to the XSY Deposit project, which alone accounted for over $30 million in volume.

Star Projects Over Blockchain Power

The trend is now project-driven:

Courtyard (Polygon): Nearly $60 million in sales.

Dmarket (Polkadot/Mythos): Close behind.

XSY Deposit (Avalanche): A major contributor.

Doodles: Up 226%, thanks to strong storytelling and community support.

This evolution signals a maturing NFT market where experiences and narratives increasingly outweigh raw blockchain capabilities.

A Sector in Flux

Despite Bitcoin’s rise, overall NFT volumes are declining, with speculation narrowing to a few niches. Fragmentation is setting in, and the broader public's enthusiasm may be waning.

A notable event:

SharpLink invested $1 billion in Ether, briefly stirring interest, but the big question remains:

Are we witnessing healthy consolidation… or a slow retreat from the mainstream?