A bizarre scene has emerged in the NFT market: transaction volume plummeted by 45% to $867 million, but sales surged by 78% to 14.9 million transactions, with the number of traders increasing by 20%. Many retail investors saw the drop in transaction volume and assumed that the NFT market was cooling down, unaware that a profound structural transformation is occurring. The transaction volume for personal avatar NFTs fell by 72%, while game NFTs and RWA NFTs have risen against the trend, becoming the new engines of the market. As a seasoned crypto analyst, today I will break down the structural changes in the NFT market, its core growth points, and the investment opportunities that retail investors should seize, helping you understand this seemingly sluggish market that is actually full of opportunities.
First, let me summarize the recent trends in the NFT market: In the second quarter of 2025, the NFT market exhibited a distinct characteristic of 'declining transaction volume, while trading volume and user participation increased.' Transactions of personal avatar NFTs (such as BAYC, CryptoPunks) plummeted by 72%, and artistic NFTs saw a 51% decline in transaction volume, yet trading volume surged by 400%. Meanwhile, game NFTs and RWA NFTs became new growth points in the market, with Guild of Guardians NFT trading volume soaring to first and fourth place, surpassing BAYC and CryptoPunks; RWA NFT trading volume grew by 29%, ranking second in the sector. In my view, the core reason for this structural transformation is that users' perceptions of NFTs are undergoing profound changes, shifting from past ostentatious consumption to functional and practical consumption.
The first core growth point: game NFTs. Game NFTs enhance user experience and asset value through innovations such as asset reuse and cross-chain circulation, becoming a new growth pole in the NFT market. Guild of Guardians is a typical representative of such projects, where its NFTs can be used, upgraded, and traded within the game, possessing clear practical value. According to a report by DappRadar, the trading volume of game NFTs has exceeded that of personal avatar NFTs, becoming the largest segment in the market. My analysis is that the core advantage of game NFTs lies in their continuous user stickiness and practical value, which can attract a large number of gamers to enter the NFT market. For retail investors, they can focus on game NFT projects with high-quality game content, a large user base, and well-developed asset appreciation mechanisms, such as Guild of Guardians and Treasureland. Participation methods include purchasing core NFT assets within the game, participating in governance and ecological construction of the game, etc.
The second core growth point: RWA NFTs. RWA NFTs convert real-world assets (such as real estate, artworks, gold) into NFTs for efficient circulation and financialization. The Courtyard platform has become the second-largest NFT market by trading volume this quarter, mainly focusing on the issuance and trading of RWA NFTs. My view is that the explosion of RWA NFTs is the result of the deep integration of the NFT market with traditional finance, attracting a large number of traditional investors into the NFT market. Compared to traditional NFTs, RWA NFTs have clear intrinsic value and cash flow, with lower risk, making them more suitable for risk-averse investors. For retail investors, they can focus on platforms that specialize in the issuance and trading of RWA NFTs, such as Courtyard, as well as RWA NFT projects backed by high-quality real-world assets. It is important to note that the investment threshold for RWA NFTs is relatively high, requiring a deep understanding of the underlying real assets.
The third core growth point: domain NFTs. The trading volume and sales of domain NFTs have both risen sharply, mainly driven by the TON blockchain ecosystem. Telegram users are rushing to purchase anonymous domain names based on digital numbers, which can be linked to Telegram accounts without needing to bind a SIM card, creating a market frenzy for specific usage scenarios. My analysis is that the core value of domain NFTs lies in their practical functions and scarcity, meeting users' needs for anonymous communication and digital identity verification. With the development of the Web3 ecosystem, the demand for domain NFTs will continue to grow. For retail investors, they can focus on domain NFT projects within the TON blockchain ecosystem, as well as high-quality domain NFT projects on other public chains. The investment threshold for these projects is relatively low, making them suitable for ordinary retail participants.
Specific operational advice for retail investors:
The first point is to abandon the speculative thinking of 'flipping avatars' in the past and focus on NFT projects with practical value, such as game NFTs, RWA NFTs, domain NFTs, etc.
The second point is to prioritize projects with high-quality content, a large user base, and high ecological activity when selecting projects, and to avoid investing in purely speculative NFT concepts.
The third point is to control your position and not invest all your funds in the NFT market; it is recommended to keep the proportion of NFT assets between 10%-20% of your personal crypto assets.
The fourth point is to pay attention to the liquidity of NFTs and choose those issued on mainstream NFT trading platforms (such as OpenSea, Courtyard) so that they can be quickly monetized when needed.
Finally, an important reminder: Although the structural transformation of the NFT market has brought new opportunities, it also carries risks such as high project elimination rates and insufficient liquidity. Before participating in NFT investments, one must conduct due diligence and understand the core value, team strength, and ecological construction of the project. Follow me @链上标哥 to avoid getting lost! Remember, the opportunities in the NFT market have shifted from speculation to practicality; only by grasping this trend can one achieve long-term profits in the market.
