NFT Trading Declines for Fifth Straight Quarter, Dropping 80% to $823 Million, According to DappRadar

NFT trading volumes have dropped for the fifth straight quarter, falling 80% to $823 million in Q2 2025 from $4 billion in the same period last year, as reported by DappRadar data.

This significant downturn represents the weakest performance since the NFT market reached its peak in 2022, when annual trading volume exceeded $50 billion.

Despite the decrease in trading volumes, NFT sales saw a 78% increase this quarter, suggesting that while prices have significantly declined, interest remains intact.

Source: DappRadar

Profile picture NFTs saw a notable decline, with trading volume decreasing by 72%, while Real-World Assets moved up to second place, showing a 29% increase in volume.

The number of monthly NFT traders rose by 20% to 668,598, indicating that users are returning to the market with different motivations compared to previous cycles.

Source: DappRadar

Domain NFTs experienced growth fueled by activity on the TON blockchain, where Telegram users acquire anonymous number-based domains associated with accounts that do not require SIM cards.

Gaming NFTs led quarterly rankings for the first time in several years, with Guild of Guardians claiming two spots in the top five collections, outpacing established projects like CryptoPunks and Bored Ape Yacht Club.

Source: DappRadar

The art category faced a 51% drop in volume but experienced a 400% increase in sales, making Art NFTs more accessible to a broader audience.

Marketplace Consolidation Accelerates as Major Players Exit

Several major platforms have ceased NFT operations during this downturn.

For example, Bybit shut down its NFT marketplace on April 8 following a $1.46 billion security breach attributed to North Korean hackers.

@Bybit_Official shuts down NFT and IDO platforms after a $1.5B security breach, reflecting industry trends and strategic shifts amid declining trading volumes and heightened security concerns.#Crypto #NFTshttps://t.co/QKghreYJu3

— Cryptonews.com (@cryptonews) April 1, 2025

The exchange mentioned efforts to “streamline offerings” while guiding users to alternative platforms such as OpenSea, Blur, and Magic Eden.

Recently, Solsniper announced the closure of its Solana NFT marketplace, which had been operational for 3.5 years, on June 13, automatically delisting NFTs and refunding bid balances.

The platform clarified that it would continue its operations as a company while discontinuing all NFT-related products to concentrate on Telegram trading bots and memecoin tools.

In a similar vein, LG Electronics shut down its LG Art Lab NFT platform after three years, ending the integration that allowed users to buy, sell, and display NFTs directly on smart TVs.

This closure follows similar exits by Kraken’s NFT marketplace and Nike’s RTFKT venture in December 2023.

VK, the largest social media platform in Russia, also closed VK NFT Hub on April 15 due to significant financial losses amounting to 94.9 billion rubles ($1.1 billion) in 2024.

Additionally, X2Y2, which was previously the fourth-largest NFT platform by volume, ceased operations on April 30, having recorded only $53.5 million in trading volume over the past year.

Nevertheless, OpenSea retained its market leadership despite substantial declines in trading volume, with sales increases attributed to its upcoming $SEA token airdrop.

Source: DappRadar

Users are actively trading lower-priced collections to accumulate points for future rewards, following familiar patterns seen in airdrop campaigns.

NFT Lending Market Collapses 97% as Utility Shifts Focus

Significantly, the NFT lending market has collapsed from nearly $1 billion in monthly volume in January 2024 to just $50 million in May 2025, marking a 97% decline.

The number of borrowers has decreased by 90%, while lender participation has dropped by 78% compared to the previous year, with average loan sizes shrinking from $22,000 in 2022 to $4,000.

GONDI has surpassed Blur’s Blend protocol to lead the sector with 54.2% of total outstanding volume.

Blend previously held over 96% of the market through airdrop incentives and aggressive flipping strategies that could not withstand the bear market conditions.

Collateral preferences have shifted notably 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.

Source: DappRadar

GONDI users are focusing on art NFTs and unique pieces, with CryptoPunks leading at $21 million in active loans.

Loan durations have tightened to an average of 31 days in May 2025, down from 40 days in 2023, indicating a more cautious and strategic approach among borrowers.

With all these declines, it is evident that the sector is undergoing a fundamental transition from speculative hype to utility-driven use cases among seasoned collectors and DeFi-native users.

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