NFTs Face Turbulence: The Rise of Tokenized Real Assets Could Transform the Crypto Landscape in 2025

While recent price increases in Bitcoin and other cryptocurrencies have sparked renewed interest, the NFT market is facing significant challenges. After experiencing a surge in popularity in 2021, NFTs are now witnessing a sharp decline in volume, evident through the dramatic drop in loan activity. DappRadar data reveals that NFT loans have plummeted by 97% since their peak in early 2024, while the average loan size has shrunk to $4,000 from $22,000 in previous years. This decline coincides with a significant decrease in both borrowers and lenders, suggesting an overall shift away from speculative investments.