The market value of NFTs has fallen back to pre-2021 levels, close to $1.5 billion.

PANews reported on February 6th, citing Cointelegraph, that the global NFT market capitalization has fallen below $1.5 billion, returning to pre-2021 levels. This market correction is accompanied by a worsening supply-demand imbalance in the NFT market. Data shows that the number of NFTs in circulation will increase by 25% to nearly 1.3 billion by 2025, but total sales will decrease by 37% year-on-year to $5.6 billion, with the average selling price falling below $100. This indicates that lower issuance barriers have led to a continued increase in supply, but buyer participation and spending have failed to keep pace. The industry contraction is also reflected in the exit of several well-known companies and the closure of platforms.