The NFT landscape in 2025 tells an interesting story of market consolidation. While the total number of NFT tokens surged past 1.34 billion, the sector experienced notable headwinds: transaction volumes contracted sharply, dropping 37% year-over-year to land at $5.6 billion. Perhaps more telling is the floor price compression—average valuations slipped to $96 from $124 compared to the prior year. This divergence between token proliferation and declining valuations suggests a market sorting through quality and genuine utility, with traders becoming more selective on what they're willing to hold. Market data reflects this shifting dynamic across the broader NFT ecosystem.