NFT Market Cap Drops to $8.1B as Ethereum Slips — Is the Boom Over?

Key Highlights:

• NFT market cap dropped from $9.4B to $8.1B as crypto prices fell in mid-August.
• Ethereum's price correction led to higher gas fees and lower NFT trading activity.
• Floor prices of major NFT collections fell across the board after August 18.

NFT Market Cap Falls to $8.1B Amid Broader Crypto Decline

On August 18, 2025, the NFT sector’s market capitalization dropped to $8.1 billion, according to NFT Price Floor. The correction came amid a wider downturn in the cryptocurrency market, especially driven by losses in Ethereum.

To recall, on August 13, NFT market cap had climbed to $9.4 billion, buoyed by Bitcoin’s price surge and an overall bullish market sentiment. This marked a 40% increase compared to the end of July, according to DappRadar.

The analytics portal CoinGecko reported slightly different figures but showed a similar trend. From August 14, the NFT sector’s cap fell from $8.2 billion to $7.03 billion, a drop of 16.6%.

Ethereum’s Price Drop Hits NFT Volume and Floor Prices

Trading volume and overall activity in the NFT sector also declined sharply, as reported by CryptoSlam.

Since most NFTs are minted and traded on Ethereum, which handles over half of global NFT transaction volume, a price correction in ETH directly impacts the sector due to rising or volatile gas fees.

As the crypto market corrected on August 18, the floor prices of top NFT collections also took a hit, showing a sector-wide revaluation.

Despite a few notable institutional purchases, the outlook for the NFT sector remains uncertain. Much depends on broader market recovery and whether the environment continues to support NFT innovation and user demand.