The NFT market experienced a significant increase in supply in 2025, with the total number of NFTs rising by 25% to over 1.34 billion. Despite this growth, the market faced a downturn in sales, which fell by 37% to $5.63 billion. The average price of NFTs also decreased, dropping to $96 from $124 in the previous year. The overall market capitalization of NFTs saw a sharp decline, plummeting from $9.2 billion in January to $2.4 billion by the end of the year. This downturn reflects broader market challenges, as indicated by the fluctuating fear and greed index, which may influence altcoin performance.