NFT Trading Volumes Plunge 80% in Q2 2025 Amid Market Shifts

NFT trading volumes have experienced a significant downturn, declining by 80% to $823 million in the second quarter of 2025, marking the fifth consecutive quarter of decrease. This sharp decline is the weakest performance since the NFT market peaked in 2022, when annual trading volume reached over $50 billion. Despite the drop in trading volumes, NFT sales increased by 78% this quarter, indicating a significant decrease in prices while interest in the market remains.

Profile picture NFTs saw a substantial decline with a 72% drop in trading volume. In contrast, Real-World Assets rose to the second position, posting a 29% increase in volume. The number of monthly NFT traders increased by 20% to 668,598, suggesting that users are returning to the space with different motivations than in previous cycles. Domain NFTs experienced growth driven by TON blockchain activity, where Telegram users purchase anonymous number-based domains linked to accounts without SIM cards. Gaming NFTs dominated quarterly charts for the first time in years, with Guild of Guardians securing two positions in the top five collections, surpassing blue-chip projects like CryptoPunks and Bored Ape Yacht Club. The art category saw a 51% decrease in volume but a 400% surge in sales, making Art NFTs more accessible to a wider audience.

Multiple major platforms have shut down their NFT operations during the downturn. Bybit, for instance, discontinued its NFT marketplace on April 8 following a $1.46 billion security breach by North Korean hackers. The exchange cited efforts to “streamline offerings” while directing users to alternative platforms, including OpenSea, Blur, and Magic Eden. Solsniper announced the closure of its 3.5-year-old Solana NFT marketplace on June 13, automatically delisting NFTs and refunding bid balances. The platform clarified it would continue operating as a company while shutting down all NFT-related products to focus on Telegram trading bots and memecoin tools. Similarly, LG Electronics closed its LG Art Lab NFT platform after three years of operation, ending integration that allowed users to buy, sell, and display NFTs directly on smart TVs. The closure follows similar exits by Kraken’s NFT marketplace and Nike’s RTFKT venture in December 2023. VK, Russia’s largest social media platform, also shut down VK NFT Hub on April 15 amid mounting financial losses. Additionally, X2Y2, formerly the fourth-largest NFT platform by volume, ceased operations on April 30, having recorded just $53.5 million in trading volume over the past year. However, OpenSea maintained its market leadership despite sharp drops in trading volume, with sales increases linked to its upcoming $SEA token airdrop.

Notably, the NFT lending market collapsed from nearly $1 billion monthly volume in January 2024 to just $50 million in May 2025, representing a 97% decline. Borrowers dropped by 90%, while lender participation fell by 78% since the previous year, with average loan sizes shrinking from $22,000 in 2022 to $4,000. GONDI overtook Blur’s Blend protocol to lead the sector with 54.2% of total outstanding volume. Blend previously controlled over 96% of the market through airdrop incentives and aggressive flipping strategies that failed to survive the bear market conditions. Collateral preferences shifted significantly across platforms. On traditional platforms like NFTfi and Arcade, Pudgy Penguins dominate with over $203 million in loans since January, followed by Azuki and Bored Apes. GONDI users focus on art NFTs and 1/1 pieces, with CryptoPunks leading at $21 million in active loans. Loan durations tightened to an average of 31 days in May 2025, down from 40 days in 2023, indicating a more cautious and tactical approach among borrowers. With all these declines, it is clear the sector is experiencing a fundamental shift from speculative hype to utility-driven use cases among experienced collectors and DeFi-native users.