Non-Fungible Tokens (NFTs) have taken the market storm in recent months. As they have grown in popularity, they have also grown in number. Some analysts believe NFTs could rival the ever-popular Bitcoin when it comes to value (Source: CNBC). This simple comparison is likely to cause a lot of people to jump on board with NFTs, which may or may not be a good thing.

NFT oversaturation would occur if the demand for NFTs fell below the availability of NFTs. Market oversaturation is common, but there are things that you can do to avoid NFT oversaturation mainly. 

NFT Oversaturation

The good news is that NFTs are not currently viewed as having an oversaturated market. While they are still wildly popular, there is some evidence of dwindling interest. If interest levels continue to decline, oversaturation could become a possibility.

Currently, with the popularity of NFTs, there are many more people interested in producing and potentially cashing in on the concept. Because of this, the market is becoming saturated with creations that likely won’t hold much value to the buyer. If this continues, oversaturation could become an issue.

Oversaturation is just one of the ideas that the crypto and NFT haters are talking about. Do you know the others? I discuss in detail with this article: Are NFTs Worthless? Everything you Need to Know.

Why is Oversaturation an Issue?

While NFTs can be a great launching point for digital artists, work can get lost in a saturated market. When searching for an NFT to purchase, many buyers don’t want to take time to sift through the subpar work posted on NFT sites. If the NFT market becomes oversaturated, it will be an issue for the creators of original work that was once very popular.

Plus, many NFT collectors have to deal with copycats and fraudsters. The cool thing is that you can learn about how they do this and how to verify who you are buying from. Check out these two potentially wallet-saving articles.

  1. Can NFTs Be Copied? 7 Things to Know
  2. How to Check the Ownership of an NFT (7 Methods)

Why is Saturation Becoming an Issue?

The NFT didn’t make a name for itself until around 2020, so you may be wondering why saturation is a problem a short two years later. Initially, the creation of NFTs was confined to a small sector; as popularity increased, so did the mainstream availability of posting and selling. 

Because of this, many people are uploading NFTs in hopes of striking it rich.

While you can use many NFT sites, they quickly become overwhelmed with such a high submission and posting rate. When the site becomes overwhelmed, it is difficult for the planned out and organized NFT creators to get their images in front of buyers.

You can see this when browsing through the NFT collections on Rarible and OpenSea. This is just one of the reasons that people who don’t understand NFTs hate NFTS. Here are 7 more reasons.

(Source: Business Insider)

NFT Oversaturation charts
A good resource to check NFT market data is Coin Market Cap

Avoiding Oversaturation

When you know better, you do better, so how can we avoid NFT oversaturation? While it isn’t tricky to avoid oversaturation, you must not rush into it. 

To avoid oversaturation, you need to make sure you do some essential things.

Find a Niche

Often, people fail in the marketplace because they don’t have a particular area of focus. When you find an area of focus, this is called niching down. While you can go away from this focus, you will spend the majority of your time working and planning around this one concept. 

When looking at NFTs, choosing one area of focus can not only help with the creation of NFTs, but it can also help as you are trying to get NFTs in front of prospective buyers. 

Finding all your work in one specific topic area will be much easier than scouring entire sites. 

How Can I Find a Niche?

Finding a niche is often very difficult because you are likely interested in many different things. 

However, as a business owner, you must focus on one area. Here are things to consider when choosing your niche.

  • Passion
  • Knowledge
  • Market – demand
  • Common niche areas

While there may be other things to consider when finding your niche, these are good starting points. 

If you find a niche that connects with your passion, you are more likely to be satisfied and successful.

Know the Market

If you have a strong knowledge of the market, you can get ahead of you away from oversaturation. For example, if there is an abundance of animated skull NFT art available, it would be best to sway away from that genre of work. 

Having an awareness of the supply and demand of various NFTs will help prevent oversaturation.


One of the leading causes of failure in marketing is outpricing your product. If you are working in a saturated market, you want to make sure the price you set makes sense. 

Pricing a product too high will drive customers away, especially in a market with high availability of other options. If you are a digital artist looking to find your best price point, this NFT pricing guide may help you out.


Before you jump into the NFT market, do some research to see what people want or are buying. If you can align your product with the demands, you are more likely to be successful in a market that is becoming saturated.


One of the best ways to avoid oversaturating your NFT market is flexibility. Life is constantly evolving, and so are the wants of people. To make sure you are making the most of your customer base, you need to be willing to change and adjust to the market.

NFT Oversaturation
NFTs by Beeple

Where is Saturation Most Common?

NFTs encompass a wide range of topics, so you may be wondering what areas are becoming most saturated. It appears the most oversaturated NFTs are avatars. There are thousands of avatars, so many that some sale sites have difficulty keeping up.

Because this corner of the market is so saturated, it would likely be best to move in a different direction if you are interested in creating NFTs for profit. If avatars are your specialty, it doesn’t mean you have to stop producing, but you need to understand the demand may not be as high as the supply, and you will likely earn a limited profit from your work.

(Source: Stockhead)

Closing Thoughts

The NFT market is far from oversaturated, but some areas have an abundance of work listed. If you want to avoid oversaturating the NFT market, you need to be willing to branch out and figure out how your passion correlates to the demands of the buyers. By doing these things, you can help avoid oversaturation.

It’s also essential to find your niche, and it doesn’t even have to always involve art. There are numerous other mediums that are NFT friendly, like memes, poems, music, and games.

Like anything business-related, you need to learn how to create a following and get your work noticed. Selling NFTs might just be the hardest part of the equation. Thankfully I created these guides. Check them out and get involved!

Good luck out there. To the moon!