NFT Market Crash: What Happened and How It Changed Crypto

When the NFT market crash, a sudden and massive drop in the value of non-fungible tokens that erased billions in paper wealth and exposed deep flaws in the ecosystem. Also known as the NFT bubble burst, it wasn’t just a price correction—it was a reckoning. In 2021, people paid millions for pixelated apes and cartoon cats. By 2023, most of those same NFTs were worth less than the gas fee to list them. The crash didn’t happen because of one bad news story. It happened because the whole system was built on hype, not utility.

The NFT valuation, the perceived worth of a digital asset based on rarity, community, and speculation rather than real-world use. Also known as floor price, it became a game of who could outbid the next person—not who actually wanted the art. Projects with no team, no roadmap, and no code sold out in minutes. Then, when the hype faded, buyers realized they owned nothing but a JPEG with no rights, no revenue, and no future. The NFT scams, fraudulent projects designed to trick users into buying worthless tokens or stealing their wallets. Also known as rug pulls, they exploded during the boom—and kept working even after prices crashed. Many of the NFTs you see listed today are either dead or fake, with trading volumes so low they’re barely visible on charts.

The crypto downturn, a broader market decline that affected Bitcoin, Ethereum, and all digital assets. Also known as bear market, it made things worse. When Bitcoin dropped below $20,000, people stopped spending. Exchanges froze withdrawals. Projects ran out of cash. Even legitimate NFT collections with real communities struggled to survive. But the crash also filtered out the noise. The projects that are still alive now have something real: active users, actual utility, or a clear path to revenue. Some are gaming assets. Others are ticketing systems. A few are even earning royalties for creators.

The NFT liquidity, how easily an NFT can be bought or sold without changing its price. Also known as market depth, it’s now the real test of survival. If you can’t sell your NFT for more than $1, it doesn’t matter how much you paid. That’s why the posts below focus on the projects that still have movement—the ones with active trading, verified teams, and real use cases. You won’t find hype here. You’ll find what’s left after the dust settled: the NFTs that actually work, the scams that got exposed, and the lessons that changed how people trade digital assets today.