The non-fungible token (NFT) sector has long been a barometer for broader sentiment in the Web3 ecosystem. After exploding onto the scene in 2021 and enjoying a record-breaking year in 2022, NFTs found themselves on unstable footing throughout 2024.
According to blockchain analytics platform DappRadar, the past year registered the lowest NFT trading volumes and sales figures since 2020. Yet if early indicators hold true, 2025 may herald a vibrant recovery, buoyed by new project launches, emerging blockchain infrastructure, and a robust slate of industry events.
A Troubling Year: 2024’s NFT Market Downturn
DappRadar’s 2024 Dapp Industry Report paints a sobering picture: NFT trading volume fell 19% from 2023 levels to $13.7 billion, while overall sales declined 18% to just under 50 million. The year began with cautious optimism in the first quarter, as trading activity climbed to $5.3 billion, only to plummet to $1.5 billion in Q3 before rebounding moderately to $2.6 billion in Q4.
Experts attribute these fluctuations to a confluence of volatile token prices, fading hype cycles, and stiff competition from the booming decentralized finance (DeFi) market, which dwarfed NFT activity in 2024.
Despite the slump, innovation in the NFT space did not grind to a halt. Collections such as Pudgy Penguins and Azuki committed to multi-pronged expansions, demonstrating that there is ample room for fresh ideas and community-driven growth. Pudgy Penguins introduced a dedicated token, $PENGU, while also laying the groundwork for the “Abstract” blockchain, an Ethereum Layer 2 solution designed to power consumer-facing decentralized applications. Azuki, a collection celebrated for its anime-inspired art, rolled out the $ANIME token and unveiled “AnimeChain,” an experimental Layer 3 blockchain in partnership with Arbitrum.
Signs of Resilience: New Projects and Events Signal Recovery
Another notable trend for the coming year is the increasing popularity of specialized Layer 2 networks. Memeland launched its $MEME token and Memenet, an Ethereum Layer 2 dedicated to gaming, indicating that creators and developers are actively seeking solutions to address network congestion and high fees. Meanwhile, “Liberty Cats,” minted on Polygon in mid-2024, showed that alternative blockchains beyond Ethereum can still capture attention—and trading volume—when coupled with compelling storytelling and tokenomics.
Beyond these headline-grabbing projects, a flurry of smaller initiatives and fresh mints underscores the NFT community’s relentless creative energy. A’varis, LiquiBots, Gainz NFT, Ark of Noah, and RillaBolt Club are each launching in the first weeks of 2025. While not guaranteed to break sales records, their presence signals sustained enthusiasm among developers, collectors, and investors who see NFTs as much more than a passing fad.
This zeal is also reflected in an expanding roster of NFT-focused events slated for 2025. Set for February 13-14, NFT Paris will convene a wide range of luminaries to explore hot-button issues, from Generative AI to Bitcoin Ordinals. Across the Atlantic, NFT.NYC—billed as “The Super Bowl of NFTs”—is scheduled for June 25-27. The gathering aims to spotlight both mainstream and niche innovators, promising previews of upcoming projects and panels with industry veterans. Other noteworthy summits include NFT Canarias 2025 in the Canary Islands, focusing on digital art, and NFC Summit 2025 in Lisbon, Portugal, which brings together leaders in entertainment, gaming, and finance.
While the NFT market’s total trading volume in 2024 was down a steep 76% from the peak of 2022, the coming year’s nascent initiatives, improved infrastructure, and renewed events circuit make a compelling case that 2025 could reverse the sector’s fortunes. Yes, the hype has cooled. But even a cursory look at new token launches, blockchain expansions, and conference rosters suggests that the industry’s appetite for experimentation is anything but extinguished.
If history is any guide, the NFT market has rebounded from dips before, propelled by fresh narratives and breakthroughs that capture mainstream attention. As high-profile collections refine their real-world utility, and smaller players continue to push boundaries, the stage appears set for a more resilient—and perhaps more mature—NFT landscape in 2025.
