2025 NFT News: Shift to Practicality and Market Evolution

Non-Fungible Token (NFT) is a type of digital asset ownership certificate based on blockchain technology, characterized by uniqueness and indivisibility. Early NFTs mainly focused on the fields of digital art and collectibles (such as CryptoPunks), but by 2025, its connotation has significantly expanded.

Today, NFTs are widely used in areas such as game items, digital identity authentication, tokenization of physical assets (such as real estate), and educational diplomas, becoming a key medium that connects the physical world with the digital ecosystem. Market data confirms this trend: the total market value of NFTs has reached $10.4 billion (a year-on-year increase of 63%), and the number of monthly active wallets has exceeded 17.2 million, demonstrating a deep integration of technology implementation and user participation.

##Recent Updates: Market Adjustments and Innovative Breakthroughs Since the second quarter of 2025, the NFT market has shown polarization. On one hand, trading volume is under short-term pressure, with sales dropping by 18.43% week-on-week to $116.9 million, but the number of buyers remains stable at 1.06 million (a year-on-year increase of 50.56%), reflecting solid underlying market demand. On the other hand, innovative practices are emerging frequently:

• Technical Integration: The G.U. Group's new patent "Location-Bound NFT System" can dynamically generate and distribute NFTs through user geofencing, enhancing offline scene interactions;
• Transition of the lending market: NFT lending trading volume has decreased by 97% from its peak in 2024, and the industry is exploring the use of real-world assets (RWA) such as property deeds as collateral to enhance stability;
• New projects emerging: In July, more than ten projects such as Space Rush Bounty Hunters (Ethereum sci-fi game NFT) and Adderrels (Bitcoin Ordinals chain meme art) will be launched, promoting content diversification.

Price and Value Drivers

The current NFT valuation logic is shifting from "scarcity speculation" to "utility pricing."

High-priced projects such as Verse Patron Token (priced at $5,000 each) rely on the scarcity of digital art attributes, while mid- to low-priced projects (such as Early Birds priced at about 0.00014 ETH) depend on community empowerment and functional integration.

The performance of the underlying public chain also affects costs: Solana attracts high-frequency trading due to its low transaction fees of less than $0.15 (a 60% decrease from 2023), while Bitcoin Ordinals has emerged as a new high-value NFT (such as OWL) hosting network due to its security.

In the midst of market fluctuations, NFTs with real income models (such as brand co-branded membership rights and game item rentals) exhibit significantly stronger resistance to price declines.

##Future Outlook: Infrastructure and Scenario Revolution The continuous evolution of the NFT industry relies on three core directions:

1. Cross-chain interoperability: Platforms like Polkadot are building NFT cross-chain protocols to achieve seamless asset transfers between multiple chains, enhancing liquidity;
2. Deep Integration of RWA: The tokenization of physical assets such as real estate and supply chain finance will broaden the category of NFT collateral and revitalize the lending market;
3. Dynamic Function Expansion: The "Evolving NFT" based on smart contracts can update its metadata in real-time according to user behavior (such as game achievements, credit records), becoming a core component of digital identity.

With the improvement of regulatory frameworks and the implementation of enterprise-level applications (such as Starbucks NFT membership program), NFTs will transform from speculative vehicles into the infrastructure of the Web3 economy.

Author: Blog Team *This content does not constitute any offer, solicitation, or advice. You should always seek independent professional advice before making any investment decisions. *Please note that Gate may restrict or prohibit all or part of its services from restricted areas. Please read the user agreement for more information, link: