The global NFT market capitalization has declined to under $1.5 billion, marking a return to pre-2021 levels, according to recent reports. This downturn is attributed to a growing supply-demand imbalance, with the number of NFTs expected to rise by 25% to nearly 1.3 billion by 2025. However, total sales are projected to fall by 37% year-on-year to $5.6 billion, and the average selling price is anticipated to drop below $100. The market correction highlights the impact of lower issuance barriers, which have increased supply without a corresponding rise in buyer participation and spending. This contraction is further evidenced by the exit of several prominent companies and the closure of NFT platforms, signaling a challenging period for the industry.