The NFT market is closing the year on a subdued note, with prices, trading activity, and participation all sliding further in December. Instead of a seasonal bounce, commonly known as a “Santa rally,” the sector has drifted to its lowest valuation levels of 2025, reflecting waning speculative interest and thinner year-end liquidity.
Market data shows that total NFT valuations dropped sharply this month. According to CoinGecko, the overall value of the NFT sector fell to around $2.5 billion in December, down roughly 72% from its January peak of $9.2 billion. The decline highlights how far the market has retreated from the optimism that marked the start of the year.
Sales activity offered little relief. Weekly NFT sales failed to break the $70 million mark during the first three weeks of December, underperforming even November’s already muted pace. With fewer traders active toward year-end, December is shaping up to reinforce the broader downtrend seen in the latter part of 2025.
This slowdown has persisted despite renewed interest in collectibles more broadly. Earlier in the year, physical items such as Labubu figures and Pokémon cards drew fresh attention to collectible culture. However, that enthusiasm has not translated into a sustained recovery for digital collectibles, as NFTs continue to struggle to regain momentum.
Falling participation weighs on NFT sales
A key factor behind the market’s weakness is a clear drop in participation. Data from CryptoSlam shows that the number of unique NFT buyers fell from just over 204,000 in the final week of November to 184,302 in the first week of December. The decline continued through the month, with buyers dropping to around 135,120 by the third week.
Sellers also stepped back. Unique sellers fell by 35.6% over the same period, slipping below 100,000 for the first time since April 2021. As both sides of the market retreated, overall transaction volumes followed suit. Total NFT transactions dropped to about 800,000 in the third week of December, down from fewer than 1 million in the opening week.
Blue-chip collections slide, with a few exceptions
Price trends among leading NFT collections largely reflected the broader slowdown. Most of the top 10 projects by market capitalization recorded double-digit floor price declines over the past 30 days. CoinGecko data shows that well-known collections such as CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins fell between 12% and 28%, underscoring the pressure facing even established names.
There were, however, pockets of resilience. Art-focused collections including Autoglyphs, Fidenza by Tyler Hobbs, and Chromie Squiggle by Snowfro posted modest gains over the same period, suggesting that demand for certain digital art segments remains more stable.
One notable shift in the rankings also stood out. A newer collection, Sports Rollbots, entered the top 10 by market capitalization, with a floor price around $5,800 and a valuation exceeding $58 million. Its rise pushed Mutant Ape Yacht Club out of the top tier, highlighting how leadership within the NFT space continues to evolve even during a downturn.
