NFTs Surge 69% to $4.8B as Blockchain Gaming Recalibrates for Utility
- The NFT market cap surged 69% to $4.8 billion on Thursday.
- Despite a 10% drop in daily active users in April, analysts believe the ecosystem is maturing.
- NFTs as core gameplay elements are expected to grow as anticipated Web3 titles release later this year.
NFTs are making a strong comeback in 2025, with total market capitalization soaring 69% to $4.8 billion, its highest level since February.
Although user activity in blockchain gaming declined in April, analysts suggest the shift toward deeper utility and growing institutional interest lay a foundation for long-term growth.
NFTs Rally
On Thursday, May 16, the total NFT market cap reached $4.8 billion, marking the first time it has sustained above $4.6 billion since February 2025, according to CoinGecko.
After plunging nearly 90% from peak levels and losing much of their mainstream appeal, NFTs are regaining traction, particularly through Web3 gaming and metaverse integrations that offer real-world functionality.
“The recent upside in the NFT market is largely driven by deeper utility and highly engaged communities,” AI analyst Alva wrote on X.
“Domain and metaverse NFTs, which have surged as much as 69%, are leading the charge thanks to real-world applications and gaming integration,” it added.
April Sees Decline in Users, But Maturity Grows
According to DappRadar , Web3 user activity and funding declined in April, but the industry continued to evolve.
Web3 gaming recorded a 2025 low of 4.8 million daily unique active wallets in April, marking a 10% decrease.
This brings its share of total dApp activity to 21%, now on par with DeFi.
Despite the dip, analysts see this as a sign of a maturing ecosystem.
“What we might be witnessing is a healthier environment—less driven by speculative play-to-earn mechanics and more by players genuinely interested in gameplay, asset ownership, and community,” analyst Sara Gherghela noted.
Skepticism Around NFT Gaming Persists
The NFT market surged in 2021, fueled by over $3.4 billion in in-game item sales from popular blockchain games like Axie Infinity.
Art-based NFTs also gained attention, with landmark moments such as Beeple’s $69 million auction.
Now, as advanced AAA Web3 titles approach release, NFTs as core gameplay elements are expected to grow in relevance.
Still, skepticism remains among traditional gamers, many of whom view NFTs as a passing trend.
Shailey Singh, a Web3 growth expert, shared in an opinion piece for CCN that many gamers “see NFTs as unnecessary, fearing they may dilute the spirit of gaming by turning it into a transactional experience.”
“NFTs undoubtedly present new opportunities for both gamers and developers,” Singh added. “But whether those benefits are shared equitably depends on how the technology is implemented.”
