The NFT art revolution once promised to transform the art world. By enabling digital artists to create, authenticate, and sell their work using blockchain technology, NFTs offered a new frontier for digital creativity and ownership. In 2021, the NFT art market soared to a record $2.9 billion in trading volume. But by early 2025, that number had collapsed to just $23.8 million, a decline of more than 90%.

In this article, Artsper examines the rise and fall of NFT art, uncovering key lessons and insights for galleries navigating this ever-evolving digital space.

The NFT boom: a new frontier for art and collecting

NFTs (Non-Fungible Tokens) brought a groundbreaking concept to the art world: the ability to prove ownership and authenticity of digital artworks through blockchain. Unlike traditional digital files, NFTs created verifiable scarcity, making digital art collectible for the first time. Fueled by this innovation, digital art platforms exploded in popularity, and a new generation of collectors, from tech-savvy crypto investors to contemporary art lovers, joined the rush to buy NFT-based art.

Beeple, EVERYDAYS: THE FIRST 5000 DAYS, 1981, © Christie’s

One of the most influential figures in this movement is Beeple, the pseudonym of American digital artist Mike Winkelmann. Beeple is famous for his “Everydays” project, where he created a new digital artwork every day for over 13 years. His work combines futuristic and pop culture themes with social commentary. In March 2021, Beeple’s digital collage “Everydays: The First 5000 Days” sold at Christie’s auction house for a staggering $69.3 million, marking the first purely digital artwork sold by a major auction house and establishing NFTs as a serious force in the art world.

What went wrong? understanding the decline

Despite this early excitement, the NFT art market has faced a harsh correction. Key factors behind the collapse include:

• Speculation over substance: Many buyers entered the market driven by quick-profit hopes rather than passion for the art itself. When speculation cooled, so did demand.
• Oversaturation: The flood of new projects, sometimes rushed and lacking artistic depth, overwhelmed collectors, diluting overall quality.
• Environmental concerns: The carbon footprint of certain blockchain networks created ethical dilemmas, prompting some artists and collectors to reconsider their involvement.
• Regulatory and market uncertainty: Increased scrutiny from regulators and rapid shifts in platform activity undermined confidence.

Art NFTs Yearly Trading Volume and Sales account, © DappRadar

Artsper & NFT

At present, Artsper does not deal with NFTs. Galleries working with Artsper currently focus on offering tangible artworks, whether physical pieces or digital works created with digital tools. Importantly, these digital artworks are not tied to NFTs or blockchain technology; they stand on their own as original creations valued for their artistic quality and uniqueness. This approach allows galleries to embrace digital creativity while maintaining the trusted, traditional framework collectors expect, without the uncertainty and volatility often associated with the NFT market.

Clément Dezelus, Palm House, 2016 available on Artsper

What galleries should do now: rethinking NFTs and digital art

With the NFT frenzy behind us, galleries have a valuable opportunity to reassess how digital art fits into their future strategies. Here's what to consider:

1. Support Digital Art Beyond NFTs

Digital art doesn't need blockchain to be meaningful. Promote high-quality digital artworks that are not tokenized but still original and verifiable through traditional means.

2. Create Hybrid Experiences

Explore innovative exhibitions that combine physical and digital art. Hybrid shows can engage both traditional collectors and tech-forward audiences interested in the intersection of art and technology.

3. Focus on Long-Term Digital Strategy

NFT trends may come and go, but digital art is here to stay. Invest in projects that emphasize artistic integrity, storytelling, and meaningful digital innovation.

The future of NFTs and contemporary art

The collapse of the NFT art market marks a pivotal moment for galleries, artists, and collectors. For those navigating its aftermath, one lesson stands out: lasting success in the digital space isn’t built on hype, but on authenticity and quality. In 2025, forward-thinking galleries are moving away from volatile blockchain platforms and instead fostering trust through curated digital exhibitions that value artistic integrity over speculation. Whether physical or digital, the artworks that stand the test of time are those grounded in meaning and not fleeting trends.

Bill Kane, EM2020-104, 2019 available on Artsper