Are NFTs Still Worth Collecting in 2025?
Read on to learn about the current state of the NFT market and whether collecting NFTs will still be worth it in 2025.
A Quick Recap of NFTs’ Rise and Fall
It all began with “purring” tokens
While the mainstream attention to NFTs exploded in 2021, their roots trace back to 2014, when the first NFT, "Quantum," was created. However, early examples of digitally unique, tradable assets went unnoticed until the launch of CryptoKitties on the Ethereum blockchain in late 2017.
The Tamagotchi-like blockchain-based game is widely considered the first instance of significant NFT popularity. These digital collectibles, unique cartoon cats that could be bred and traded, showcased the potential of NFTs and even caused temporary congestion on the Ethereum network.
The golden year of NFTs
Once the popularity of CryptoKitties subsided, the NFT market experienced a period of relative quiet before erupting into a mania in 2021. This “gold rush” was fueled by a confluence of factors, including:
- Increased mainstream awareness of crypto;
- celebrity endorsements;
- the COVID-19 pandemic, which drove more activity online.
Landmark sales, such as Beeple's $69 million auction of his digital artwork "Everydays: The First 5000 Days," captured global attention and symbolized the perceived value of digital ownership.
Iconic NFT projects like CryptoPunks, with their limited supply of pixelated characters, and the Bored Ape Yacht Club (BAYC), offering membership to an exclusive online community, became status symbols and were sold at sky-high prices on the secondary market. Fortunes were made, and the narrative of "digital gold" took hold.
Nothing lasts forever, especially in crypto
Unfortunately, the price bonanza didn't last. Beginning in 2022 and continuing through 2024, the NFT market underwent a significant correction. Several factors contributed to this decline, including:
- Broader macroeconomic concerns;
- Rising interest rates;
- Cooling of speculative fervor.
Many NFTs that had fetched astronomical prices saw their value plummet, leading to significant losses for some investors. Market sentiment shifted, with a greater focus on utility and long-term value rather than short-term gains.
Why NFTs Could Still Be Worth Investing in Today
Recent data suggests a more sober but still active NFT market, with analyses conducted in early 2025 indicating a renewed phase of growth, characterized by a greater emphasis on utility and real-world applications beyond digital art and collectibles.
Reports from early 2025 predict strong growth for the NFT market.
The Business Research Company estimates it will reach $61 billion in 2025, a 41.6% jump from 2024. Technavio projects an $84.13 billion increase between 2025 and 2029, with a 30.3% annual growth rate. These forecasts indicate significant near-term and medium-term expansion, which means it might be time again to try to discover trending collections that could gain in value in the future.
Art and collectibles still hold value
Nevertheless, digital art still leads the NFT market in 2025, but buyers increasingly want more than just images.
NFTs offering perks like event access, community membership, rewards, and governance are gaining traction. Established collections like BAYC and CryptoPunks remain influential, valued for their strong communities, cultural significance, and the exclusive benefits they provide to holders.
A closer bond between gaming and NFTs
NFTs are booming in gaming, letting players own in-game items like land and characters, fueling play-to-earn models.
Valued at $4.8 billion in 2024, the gaming NFT market is projected to hit $44.1 billion by 2034. Key areas include tradable in-game assets, collectibles, virtual real estate, and trading cards. Platforms like The Sandbox also enable user-created NFT game worlds.
The building block for the metaverse
NFTs are key to the metaverse, establishing ownership and value for virtual land, avatars, and experiences.
Virtual real estate allows users to own land, build identities, and earn within virtual economies. Demand for NFT-based virtual goods could increase as the metaverse moves into its next iteration.
Real-world asset (RWA) tokenization
Tokenizing real-world assets like property and art into NFTs is a growing trend.
This allows for shared ownership, making these assets more accessible and easier to trade. Instead of buying a whole property, you could own a fraction represented by an NFT, increasing market liquidity.
How to Invest in NFTs Today
The NFT hype cycle is over, but smart investing is still possible. Forget the noise and learn how to invest strategically. Instead of chasing fleeting trends, consider these tips to invest in NFTs wisely:
- Seek out established projects: Prioritize NFTs backed by robust communities and a demonstrable history of delivering on their promises.
- Value substance over buzz: Look for NFTs that offer tangible benefits or possess genuine artistic significance, rather than relying solely on speculation.
- Resist impulsive decisions: Avoid investing based on short-lived hype or the fear of missing out on a trend.
- Practice thorough research: Conduct your own due diligence and remember that NFTs should only represent a minor portion of a well-balanced investment portfolio.
The Bottom Line
While NFTs aren’t all the rage anymore (like they were in 2021), real potential remains alongside the risks. But make sure you invest with your head, not your heart, focusing on solid projects for the future, not quick potential wins. Think long-term value, not short-term hype, and never invest more than you can afford to lose.
