NFTs Are Reawakening For 2025 Via A Renewed Boost From the Crypto Market’s Bull Run

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Non-fungible tokens (NFTs) are experiencing an interesting resurgence in recent times. Before now, the industry saw a drawn-out downturn, with major marketplaces like OpenSea and Rarible losing a lot of traction in the bear market, in addition to a seeming disinterest among crypto and blockchain community members. Thankfully, it would seem that the market slump is withering away.

The NFT market is projected to jump nearly 100% from $1.6 billion in 2023 to $3.2 billion in 2027. CoinGecko data now shows that the sector’s market cap is at $10.2 billion despite a recent 10% drop. Also, the 24-hour trading volume now swings around $96 million.

Factors Supporting the Resurgence of NFTs

There are several factors supporting the resurgence of NFTs in the blockchain market. For instance, the use of NFTs has expanded and increased over time. Initially, NFTs were most popular for their application in the art sector. These non-fungible tokens represented digital art and were tradable in marketplaces beyond simply serving as digital collectibles. Today, art is one of many uses of NFTs.

For example, online casinos can use NFTs to represent in-game assets. A Bitcoin casino, where users can deposit, withdraw, and bet using BTC, can also allow players to trade or win NFTs. These non-fungible tokens can represent avatars, in-game items, specific table designs, or themes, in addition to offering users the ease of instantaneous transactions, auditable payments, and exciting perks, all supported by Bitcoin. Learning how to play at a Bitcoin casino before making a deposit is vital, as doing so will help you understand the benefits of crypto gambling, including security, anonymity, and fast transactions.

Furthermore, NFTs are great for Decentralized Finance (DeFi) integration. Like many other fungible assets, there are liquidity pools where users can stake NFTs to create passive streams of income.

Another factor contributing to the market’s resurgence is a renewed interest in digital collectibles. Several NFTs from well-known persons, celebrities, and entities are enjoying plenty of attention by offering holders unique experiences and attracting old and new NFT lovers. For instance, data from CryptoSlam shows that NFTs recorded sales worth $562 million, the highest since the $600 million recorded in May. So far, sales for 2024 are at $8.5 billion, heading towards the $8.7 billion recorded in 2023. Already, the numbers of unique sellers and buyers for 2024 are 3.9 million and 7.4 million, respectively, higher than the 3.8 million and 4.5 million recorded in 2023.

Is Crypto Driving the NFT Resurgence?

Perhaps the most potent factor driving a considerable pump in NFTs is the crypto market’s bull run. In the last few weeks, Bitcoin (BTC) has recorded a considerable increase from $70,294 on November 1 to $97,263 on December 1, a 38.3% increase in one month. On December 17, Bitcoin hit a new all-time high of $108,135, a 156% increase from 2024’s opening price of $42,208. 

Much of the pump in the Bitcoin market has been tied to Donald Trump’s victory at the recently-concluded US elections. Trump, who was strongly against cryptocurrencies at first, later took a different approach and repeatedly promised to support the sector. As part of his campaign, he berated President Joe Biden for his administration’s unsupportive stance towards the industry, asking crypto enthusiasts to vote for him instead of Biden. While speaking at the Bitcoin Conference 2024 in Nashville, Trump promised to fire the chairman of the United States Securities and Exchange Commission (SEC) Gary Gensler, saying he will do it “on day one.” In addition to suggesting his support for a federal Bitcoin reserve, Trump has also promised unspecified plans that will help the US take the lead in crypto before countries like China do.

Crypto’s total market cap is at $3.91 trillion, increasing more than 117% from the $1.8 trillion recorded on January 3 this year. According to Presto Research, BTC will hit $210,000 in 2025, with the total market capitalization predicted to reach $7.5 trillion. For Morgan Creek Capital CEO Mark Yusko, the forecast is somewhere between $120,000 and $150,000 by mid-2025.

Final Thoughts

NFTs were very popular between 2020 and 2022. Unfortunately, their popularity and market value crashed significantly only a short time after. As recently as September, sales fell to $296 million, a heavy 81% plunge from $1.6 billion in March 2024. However, despite the crash, the average transaction value rose to $60 in September from $50.72 in August, marking an 18% difference. These figures remain far below the heights of the NFT bull market during the sector’s peak. However, next year, the potential surge in the Bitcoin market is expected to positively impact the NFT sector and reignite investor interest.