The NFT market is showing signs of recovery in early 2026, with a notable increase in market capitalization and trading volumes. According to CoinGecko, the NFT market cap has risen by over $220 million since the start of the year, with some projects experiencing price surges in the hundreds or thousands of percent. Despite this uptick, liquidity remains a significant issue, with only a small fraction of projects achieving substantial trading volumes. The market's recovery appears to be driven by existing capital rather than new inflows, as speculative enthusiasm has cooled and the multi-chain landscape has reverted to Ethereum dominance. The total NFT transaction volume in 2025 was $5.5 billion, a 37% decline from 2024, highlighting the ongoing challenges. While some NFTs with practical utility or celebrity endorsements are gaining attention, the overall market remains constrained by limited liquidity and interest from new investors.
NFT Market Sees Early 2026 Recovery Amidst Lingering Challenges
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