Is Ethereum’s NFT edge strong enough to beat Bitcoin in 2025?

• Ethereum maintains NFT dominance as Bitcoin drops to nineteenth rank.
• Are NFTs shedding their attraction?

Q1 is coming to an finish, and whereas the quarter didn’t unfold as many anticipated, particularly with Bitcoin [BTC] failing to publish increased highs, there was one other stunning shift out there.

Gross sales of non-fungible tokens (NFTs) noticed a pointy decline within the first quarter of 2025, dropping by 63% year-over-year.

Bitcoin-based NFT gross sales additionally took a significant hit, falling to $291 million in 2025, marking a 79% drop from $1.4 billion within the first quarter of 2024.

In distinction, Ethereum [ETH] continues to dominate, displaying a 22% weekly enhance in buying and selling quantity – fairly the alternative of Bitcoin’s 47% decline over the identical interval.

Does this point out that Bitcoin is shedding its edge within the NFT house? May this give Ethereum an additional benefit?

Declining NFT gross sales quantity indicators diminishing attraction

AMBCrypto’s evaluation of the NFT marketplace signifies that Ethereum has maintained its dominance in whole gross sales quantity throughout a number of timeframes. 

Regardless of a 58% month-to-month retracement, Ethereum’s gross sales quantity remained sturdy at $142 million USD. 

In distinction, Bitcoin, which initially held the second place, has now slipped to the nineteenth rank, reflecting an 80% contraction in NFT gross sales quantity.

This vital retracement aligns with the general decline in whole NFT gross sales throughout all blockchains, which have seen a 43.17% discount on the time of this writing.

This sharp contraction marks the worst month for NFT gross sales, contributing to the 63% quarterly pullback. 

Supply: CryptoSlam.IO

Key takeaway: Non-fungible tokens (NFTs), as soon as thought-about a groundbreaking digital asset class, are actually dealing with a big market decline.

Research reveals that 98% of NFT collections are barely traded. In truth, solely 0.2% of NFT drops have been worthwhile. Most NFTs lose over 50% of their worth inside days.

As famous by AMBCrypto, the speculative nature of NFTs additionally presents notable funding dangers.

Historic parallels might be drawn with collectibles like Beanie Infants, which noticed a pointy decline in worth after their preliminary surge in reputation.

Ethereum’s continued dominance amidst market decline

In January 2025, Ethereum’s NFT gross sales captured round 50% of the overall market quantity, totaling roughly $338 million. 

Nonetheless, Ethereum skilled a 23.84% retracement in gross sales quantity from December 2024 to January 2025.

Ethereum’s market efficiency in Q1 has additionally been predominantly bearish, with a forty five% drawdown, presently testing the essential $1,831 help zone. The $2,000 worth level has change into a big resistance zone.

Supply: TradingView (ETH/USDT)

Consequently, even staunch crypto advocates have revised their worth targets for Ethereum in 2025, slashing expectations by 60%.

Regardless of ETH sustaining its dominance within the NFT sector, a 58% month-to-month contraction in NFT gross sales quantity has failed to soak up sell-side liquidity – a key market driver in earlier bullish phases.

If this pattern persists, the prevailing bearish sentiment round Ethereum might intensify. This might undermine its relative power over Bitcoin, diminishing its aggressive edge.