Executive summary
After the 2021–2022 boom and 2023 reset, NFTs entered a phase of normalization. In 2024, total sales reached about $8.83 billion, a slight uptick from 2023 but far below peak years. In the first half of 2025, sales totaled roughly $2.82 billion, with July 2025 rebounding to about $574 million as average sale values rose—evidence of a smaller but more discerning market. ([cointelegraph.com](https://cointelegraph.com/news/nft-total-sales-volume-2024-data-december?utm_source=openai))
What changed since 2024–2025
Market stabilization replaces mania
Transaction counts remain healthy even as speculative volumes cooled, suggesting a shift from quick flips to utility, collecting, and brand activations. Analysts tracking CryptoSlam and DappRadar data highlight this pattern of lower dollar volumes alongside steadier participation. ([cointelegraph.com](https://cointelegraph.com/news/nft-sales-volume-h1-2025-dappradar-cryptoslam/?utm_source=openai))
Bitcoin’s Ordinals and Runes rewired narratives
On April 20, 2024 (the halving), Casey Rodarmor’s Runes protocol launched and briefly dominated Bitcoin transactions, at times exceeding 68–80% of activity before cooling. The arc mirrors other hype cycles: a fee spike, rapid token etchings, then a normalization of usage. Ordinals and Runes still matter—if only because they proved NFTs and token experiments can materially affect Bitcoin’s fee market. ([coindesk.com](https://www.coindesk.com/markets/2024/04/20/runes-protocol-launches-on-bitcoin-sending-fees-soaring-as-users-rush-to-mint-tokens?utm_source=openai))
Marketplace shake-ups and the royalty reckoning
Creator royalties migrated from “assumed” to “optional.” OpenSea’s 2023 pivot to zero fees and optional royalties, spurred by Blur’s rise, reshaped incentives and triggered creator backlash and migration. These dynamics continue to influence how projects model cash flows and IP. ([coindesk.com](https://www.coindesk.com/web3/2023/02/17/opensea-goes-zero-fee-creator-royalties-optional?utm_source=openai))
Regulatory overhang added to uncertainty. In February 2025, OpenSea’s CEO said the SEC ended its probe without enforcement—a relief for marketplaces even if broader policy remains unsettled. ([nftnewstoday.com](https://nftnewstoday.com/2025/02/24/sec-ends-investigation-into-opensea-a-historic-win-for-nfts-and-the-crypto-industry?utm_source=openai))
Regulatory and legal landscape: clarity by accretion
United States: enforcement edges and case law
The SEC has used case-by-case actions to draw lines (e.g., Impact Theory in 2023), while artists’ preemptive challenges have struggled—on September 30, 2025, a federal judge dismissed a suit seeking to restrain hypothetical NFT enforcement. The agency also stood up a crypto task force in early 2025 to coordinate policy signals. Together, these moves suggest “proceed, but be precise.” ([sec.gov](https://www.sec.gov/newsroom/press-releases/2023-163?utm_source=openai))
Courts continue to define IP boundaries. On July 23, 2025, the Ninth Circuit held NFTs can be “goods” protectable under the Lanham Act, yet sent Yuga Labs’ case against Ryder Ripps back for a trial on likelihood of confusion—nuanced precedent for brand and parody disputes. ([reuters.com](https://www.reuters.com/legal/litigation/us-appeals-court-overturns-bored-ape-makers-88-mln-win-nft-trademark-case-2025-07-23/?utm_source=openai))
European Union: MiCA’s scope and the NFT question
MiCA’s phased application accelerated in 2024–2025, with ESMA/EBA consultations refining technical standards, staff competence, and asset classification. Key takeaway: “Unique” NFTs may sit outside core MiCA rules, but series-like, interchangeable collections could fall inside—underscoring the importance of how projects design and describe tokens. ([esma.europa.eu](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica?utm_source=openai))
Brands recalibrate utility
Not every high-profile rollout endures: Tennis Australia’s Australian Open Artball NFTs, once packed with event perks, saw floor prices plunge and online infrastructure shutter in 2025—a cautionary tale about tying benefits to ongoing operational commitments. ([theguardian.com](https://www.theguardian.com/sport/2025/jan/14/almost-10000-images-of-tennis-balls-plunge-up-to-90-in-value-as-australian-open-appears-to-ditch-nfts?utm_source=openai))
Utility over hype: where NFTs deliver value in 2025
Consumer brands and retail IP
One bright spot is licensing and physical extensions. Pudgy Penguins expanded into 3,100 Walmart stores in 2024, linking toys to a digital world and sharing IP royalties with holders—an example of how NFT-native brands can tap mainstream distribution while aligning incentives. ([axios.com](https://www.axios.com/2024/02/20/pudgy-penguins-nft-walmart?utm_source=openai))
Gaming experiments—still searching for product-market fit
Publishers continue to test NFT integrations, but consumer response remains mixed. Ubisoft’s late-2024 NFT-forward release drew muted reception, reinforcing that players value fun and fairness over token mechanics. ([theverge.com](https://www.theverge.com/2024/10/30/24283677/ubisoft-nft-game-champions-tactics-grimoria-chronicles-sequence?utm_source=openai))
Culture, community and trust
Beyond mechanics, trust and social dynamics matter. New research on Chinese NFT communities shows how cultural norms shape technology, institutional trust, and community behavior—reminding global teams to localize trust-building as much as product features. ([arxiv.org](https://arxiv.org/abs/2504.11928?utm_source=openai))
Technology standards shaping the next cycle
Royalties: from norms to rails
Royalties are no longer assumed, so standards matter. ERC‑2981 standardizes royalty info discovery; newer ideas like ERC‑6786 (registry for paying royalties) and ERC‑5553 (on‑chain IP/royalty structure) explore portable, auditable ways to route proceeds—useful in a multi‑marketplace world where enforcement is voluntary. ([ercs.ethereum.org](https://ercs.ethereum.org/ERCS/erc-2981?utm_source=openai))
Hybrid and collateralized NFTs
Experimental hybrids (e.g., “ERC‑404”-style approaches) blend fungible and non‑fungible properties to ease liquidity and fractional access, though they remain unofficial and evolving. Drafts like ERC‑7595 explore collateralized NFTs for DeFi‑ready assets. Builders should prioritize standards compatibility and clarity. ([ethereum-magicians.org](https://ethereum-magicians.org/t/eip404-erc404-hybrid-non-fungible-token/19081?utm_source=openai))
Bitcoin’s inscription layer as a feature, not a fad
Ordinals inscriptions and Runes demonstrated demand for Bitcoin‑native digital objects and tokens, materially lifting miner fees in bursts and expanding the design space—even as activity normalized after the launch spike. ([coindesk.com](https://www.coindesk.com/tech/2024/04/17/runes-casey-rodarmors-protocol-for-shtcoins-on-bitcoin-set-to-go-live-at-halving?utm_source=openai))
How to evaluate an NFT project in 2025
Checklist
- Utility and roadmap: Does the NFT unlock durable access, IP licensing, in‑game function, or other ongoing value beyond art? Are benefits operationally sustainable? ([theguardian.com](https://www.theguardian.com/sport/2025/jan/14/almost-10000-images-of-tennis-balls-plunge-up-to-90-in-value-as-australian-open-appears-to-ditch-nfts?utm_source=openai))
- Standards and composability: Use widely supported standards (ERC‑721/1155, ERC‑2981) and document royalties clearly; beware bespoke logic that breaks marketplace tooling. ([ercs.ethereum.org](https://ercs.ethereum.org/ERCS/erc-2981?utm_source=openai))
- Legal posture: Assess securities and IP risk, especially in the U.S.; watch how courts apply trademark law to NFTs and how EU guidance treats series‑like collections. ([law.justia.com](https://law.justia.com/cases/federal/appellate-courts/ca9/24-879/24-879-2025-07-23.html?utm_source=openai))
- Market health: Track CryptoSlam/DappRadar metrics for chain‑level rotation and seasonality rather than chasing spikes. ([cointelegraph.com](https://cointelegraph.com/news/nft-sales-volume-h1-2025-dappradar-cryptoslam/?utm_source=openai))
- Operational infrastructure: If your project pays creators, partners, or players, plan global payouts, FX, and compliance from day one; payout orchestration platforms such as Wirepayouts (wirepayouts.com) say they offer SEPA, SWIFT, local bank transfers, and digital wallets via API. ([wirepayouts.com](https://www.wirepayouts.com/?utm_source=openai))
Mini‑interview: creator payouts and royalties in practice
Q: What changed most for creators since royalties went “optional” on major markets?
A: Predictability. Many creators now assume zero on secondary and focus on primary sales, licensing, and off‑chain revenue (merch, events). Standards like ERC‑2981 still help—markets that choose to honor it can automate payouts—but strategy has shifted toward building direct fan value and IP deals. ([ercs.ethereum.org](https://ercs.ethereum.org/ERCS/erc-2981?utm_source=openai))
Q: How do teams operationalize global payouts to contributors and licensors?
A: Treat it like a core feature, not an afterthought. Decide which geographies you’ll serve, set KYC thresholds, and integrate a payout layer (bank rails and digital wallets) with clear tax reporting. Platforms in this space emphasize multi‑rail support and compliance to avoid jurisdictional surprises. ([wirepayouts.com](https://www.wirepayouts.com/?utm_source=openai))
Q: Are Bitcoin inscriptions relevant for creators?
A: Yes, as cultural artifacts and for chain‑diversification. But creators should weigh audience overlap, wallet UX, and fees, which spiked around Runes launch and then tapered with demand. ([coindesk.com](https://www.coindesk.com/markets/2024/04/20/runes-protocol-launches-on-bitcoin-sending-fees-soaring-as-users-rush-to-mint-tokens?utm_source=openai))
FAQs
Are NFTs “back” in 2025?
They’re different. Sales recovered modestly versus 2023, and monthly activity shows pulses (e.g., July 2025), but the market is smaller and more utility‑driven than 2021–2022. ([cointelegraph.com](https://cointelegraph.com/news/nft-total-sales-volume-2024-data-december?utm_source=openai))
Do NFTs count as securities?
Sometimes. The SEC has treated certain NFT sales as unregistered securities offerings; outcomes depend on facts and promises to buyers. Courts and regulators continue to clarify boundaries. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2023-163?utm_source=openai))
What did the Yuga Labs vs. Ryder Ripps appeal change?
The Ninth Circuit recognized NFTs as protectable “goods” under trademark law but required a trial on likely consumer confusion, refining how courts may weigh parody vs. infringement. ([law.justia.com](https://law.justia.com/cases/federal/appellate-courts/ca9/24-879/24-879-2025-07-23.html?utm_source=openai))
Are NFTs covered by MiCA in the EU?
MiCA doesn’t categorically regulate all NFTs. ESMA guidance suggests unique, non‑interchangeable NFTs may sit outside core scope, while series that function like fungible assets may fall in. ([legal.pwc.de](https://legal.pwc.de/en/news/articles/esma-seeks-market-input-on-crypto-asset-classifications-under-micar?utm_source=openai))
What standards should new collections use?
Start with ERC‑721 or ERC‑1155 plus ERC‑2981 for royalty info; consider emerging drafts (e.g., ERC‑6786) if you need portable, auditable royalty payments across venues. ([ercs.ethereum.org](https://ercs.ethereum.org/ERCS/erc-2981?utm_source=openai))
Outlook: 2026 and beyond
Expect incremental growth anchored in real utility: brand licensing, membership, gaming assets that respect player time, and Bitcoin‑native digital objects when justified. Legal, standards, and payouts plumbing will define winners more than meme cycles. Teams that design for compliance, composability, and cash‑flow realism—while building trust and culture—will outlast volatility.
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