Some of the most prominent tokens from this category we have already covered in our extensive “10 Best Metaverse Crypto Projects” article. These are obvious use cases for the most profitable NFT tokens. However, the concept can be applied to many industries allowing investors to better diversify investments if they are interested in using this innovative asset class. NFT projects are increasingly seen as a form of investment, but they come with risks and require strategic considerations for those looking to profit or diversify their portfolios.
We will discuss the current trends in the industry, previous investor grievances, reasons for the rise and fall of the sector, and other important topics related to non-fungible tokens and their value to a contemporary investor.
The meteoric rise of the best NFT collections
The incredible surge in prices and public interest in various digital collectibles occurred in 2021. Even regular folks who had never experienced any curiosity about cryptocurrencies and blockchain technology, in general, were suddenly among the most enthusiastic purchasers. It was a perfect storm caused by various factors including celebrity promotions, media hype, and the novelty of a technology that promised to provide new monetization instruments to artists and content creators. NFT projects enabled an artist to receive royalties from secondary sales and addressed issues of authenticity and ownership of digital artwork, which had previously been challenging in the digital space.
There was no single cause for this agitation. Multiple factors contributed to the creation of the short-lived global phenomenon of promising NFT tokens pulling millions into the world of crypto:
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The uniqueness of the technology. A non-fungible token is a great way to record information on an immutable ledger while making each piece of data unique. The most obvious use case for this feature is to keep track of and prove ownership rights. NFTs serve as certificates of ownership for digital artwork, though there are limitations since artwork files themselves are often not stored on-chain but referenced by the token. Early adopters were excited about endless possibilities like using them for ticket sales and digital art purchases.
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The surrounding market situation. There was another big reason for these new digital assets to start gaining traction. The long-lasting bull run was agitating investors and making everyone rich. People wanted a piece of the pie and jumped at the opportunity to own something unique from the world of cryptocurrencies. The cost of minting and purchasing NFTs, including gas fees, became an important consideration, and understanding these costs was crucial for both collectors and creators. People believed that a collection of images would have the same value as Bitcoin.
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The pandemic affected everything. Working from home, socially distancing, and the influx of cash wire transferred to millions of people around the globe as a way to support economies made many tech businesses including those working in the blockchain domain to suddenly experience a surge in growth.
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The real FOMO. The fear of missing out became truly palpable with the advent of non-fungible tokens as many newcomers believed that it was the next big value explosion in the crypto industry. Many did not even know what these new assets were. They just saw what everyone was talking about and decided to join the conversation in the most direct way possible — by purchasing the topic starter. Many investors and creators tried to capitalize on the emerging NFT trend for financial gain.
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Promotions by celebrities. It is possible that the biggest growth driver of the industry was the sudden influx of famous talking heads promoting things that they did not fully understand. Hollywood stars, popular rappers, and even auteurs like Tarantino talked about supporting high-potential NFT projects and owning them.
All these factors contributed to the rapid expansion of the formerly niche market. At the same time, many people started talking about the potential of these new tokens to change the world and many industries including gaming, streaming, cloud computing, ticket sales, and many other industries. The importance of mainstream adoption became clear, as broader acceptance and integration of NFTs would determine the future success of NFT projects. Since many laymen did not understand the intricacies of the technology and simply believed “the authority”, the massive bubble pop was a surprise to many. Favorable market conditions during the bull run also fueled the NFT boom.
NFT transactions are conducted using cryptocurrency, such as Ethereum, and the rise of NFTs is closely tied to the broader cryptocurrency market.
The crash before the winter
Many crypto enthusiasts remember the infamous “crypto winter” when the whole industry experienced a massive drop in every conceivable metric. Market capitalizations, trading volumes, total value locked, and many other previously impressive numbers started deflating. This highlighted the volatile nature of the NFT market, where rapid price changes can significantly impact both creators and investors. Again, a multitude of factors played a huge role in this historic decline. The crypto market in general was destined to return to its glory once more but not leading NFT crypto projects.
By May 2022, it was evident that the market was not interested in the novel digital asset as prices started falling across the board for the third week in a row. The contraction of the market was massive. It dropped from $1.8 billion to just over $200 million by October with volumes declining by close to 90%. Conducting thorough research before investing in NFT projects became crucial to avoid significant losses. Many popular collections saw similar price drops with Doodles losing 82%, Meebits close to 75%, and Cool Cats seeing an over 90% decline, reflecting a sharp decrease in selling activity and a major impact on secondary sales for both creators and collectors.
Many experts were trying to tie together the beginning of the crypto winter and the fall of the NFT market. However, the latter started its journey to the bottom much earlier with first signs of local recession noticed by specialists as early as February 2022. In total, the market lost over $60 billion and has never recovered since. This dramatic loss also underscored the risk of scam projects, making transparency and legitimacy essential in the NFT space.
Not the end of top decentralized NFT projects
The concept of non-fungible tokens did not inspire the general public. To this day, over 70% of people in the US, the biggest market, have never heard about them. While some practical use cases seemed to be passionately discussed by the community, people know that these tokens did not solve problems as efficiently as already existing instruments and services.
However, the same proof of ownership can be incredibly valuable in a variety of other industries. The most obvious example is the gaming industry where in-game assets can be owned by anonymous individuals and retain value if the game itself is popular over a long period. For example, many MMOs could benefit from the implementation of the technology. Creating NFT projects that focus on in-game assets and community engagement is becoming a key strategy for developers looking to add value and long-term success.
At the beginning of 2023, over 90% of all traded top NFT projects on Ethereum were declared worthless by many experts including DappGambl. With over 16 hundred projects completely dead in the water, it was a catastrophe. However, it also allowed truly valuable platforms to stay relevant and quickly separate themselves from the chaff. Successful NFT projects generate ongoing revenue through primary sales, secondary sales, and royalties, which helps them maintain their position in the market.
At the beginning of 2024, there was a slight resurgence with trading volume reaching $1.5 billion monthly. Some companies like Sotheby’s even sold digital collections, highlighting the importance of selling NFTs for both creators and collectors, although at relatively low prices. It is important to know that Solana, one of the most speculative networks out there, has surpassed Ethereum as the main destination for many activities related to non-fungible tokens. The process to mint new NFTs has become a crucial step in launching a new NFT collection, impacting how these collections are introduced and acquired by users.
The biggest gain is in the sector closely related to gaming and entertainment where all innovative NFT projects in 2025 are capturing audiences with exciting announcements. Games that contain in-game assets that can be owned and traded are still less popular than traditional triple-AA and indie productions, but the renewed interest from the general public is apparent.
Another important avenue for the industry to explore is the implementation of tokenization in internationally recognized brands. After years of development and testing, many corporations are doing their part in the popularization of the concept. In March 2023, Starbucks launched its, quite successful, program by offering paid collections of digital assets. All 2000 initially minted tokens were sold in just under 20 minutes.
Gaming is the next frontier
There is a rather tough question to answer “What are NFT games exactly?” Some say that it is important for titles from this category to have architectures that incorporate elements of blockchain technology or use non-fungible tokens as inherent parts of game mechanics. Others believe that having at least some connection to the concept is enough. Players can also earn money by participating in NFT games and trading in-game assets, making these games attractive for those seeking new ways to profit in the digital economy.
There are many examples of interesting new NFT projects in 2025 from the gaming sector of the larger crypto ecosystem:
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Axie Infinity. Despite many crippling issues with the economy, the project is still going strong albeit with a way smaller audience. The auto-battler with gatcha mechanics and the ability to trade acquired monsters became an instant hit in South-East Asia where many players managed to earn a decent living by playing the game full-time. Now, the $AXS token is trading close to historic lows but has healthy daily trading volumes (over $24 million).
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Decentraland. This gaming project is listed here because of its impact on the industry. Current metrics are far from impressive and the player count is incredibly low. The initial stage of the development process was accompanied by trumpets and whistles playing a hype melody with many investors jumping on the opportunity to buy plots of land and try to deploy something on their digital properties. ears later, many of them are abandoned ghost towns. However, the project is still going and you can buy non-fungible tokens from it.
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Farmine Land. This game is all about its P2E mechanics and the exploration of the virtual world. The charm of pixel graphics seems to be working every single time a competent developer decides to use this style. The game was praised by many players who found gameplay loops interesting and P2E rewards generous. Galxe, the native token, is traded on the polygon blockchain and costs roughly 2.4 MATIC or $1. The title is quite young and has a lot of room to grow.
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Faraland. Launched in 2021, this project is also still alive despite the significant drop-off in user activity and token prices. Prices are at historic minimums, but there is still a passionate community of players and the support is ongoing. At the time of writing, the market capitalization is at $290,000 and daily trading volumes usually hover above $25,000. These numbers don’t seem impressive, but the community seems to be quite supportive making it a good target for gamers.
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NBA Top Shot. This platform stands out as a leading example of sports-related NFT projects, allowing basketball fans to buy, sell, and trade officially licensed digital collectibles and moments.
Most of these digital assets do not have a sufficient level of liquidity or user activity to warrant setting up a complex trading strategy like utilizing advanced AI trading bots or going for DCA acquisition of tokens. However, active players can try earning them and trade them for money on the free market. Thankfully, many marketplaces are still active and assets are listed on DEX platforms. Popular sites such as OpenSea, Rarible, and Nifty Gateway allow users to buy, sell, and trade gaming NFTs, making it easier to participate in the NFT ecosystem.
When considering gaming NFT projects, it's important to evaluate their investment potential as well as the risks involved, since the market can be volatile and returns are not guaranteed.
Key trends in the industry
The current trajectory of the sector is uncertain. However, we see several trends forming in the market, with expected growth and evolution in the NFT sector as new concepts and innovations emerge. Effective marketing is crucial for new NFT projects, as it can drive interest and hype around upcoming NFT collections, helping them stand out in a competitive landscape. Investors should be on the lookout for emerging NFT projects capable of changing the narrative surrounding the topic, and conducting thorough research is essential to identify promising opportunities and mitigate risks. While “traditional” non-fungible tokens look like they are falling out of grace with the general public, new concepts may give some breathing room to enthusiasts who believe in the technology.
Hybrid tokens
This particular trend is one of the most powerful and influential in the industry. By mixing together the unique properties of non-fungible tokens with a variety of new monetization features through the added functionality of the novel ERC-404 standard in the Ethereum ecosystem, the new type of digital assets can make fractional ownership of any object or virtual asset possible.
Why is it important?
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The fractional ownership of assets lowers the entry barrier for new investors. By purchasing portions of ERC-404 tokens, they can get started without overpaying.
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The ERC-404 standard is highly flexible and can be applied to a variety of industries with the most notable mentions being real estate, art, in-game assets, and various physical and virtual collectibles. Fractional ownership also allows more people to access NFTs that are considered a status symbol in the digital world, making it possible for a wider audience to participate in the symbolic display of high-value assets.
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The launch of the $PANDORA token managed to garner significant attention from the investors with market capitalization quickly reaching an impressive $180 million mark.
Real-world asset applications
RWA projects are becoming quite popular among many crypto investors many of whom are individual capital holders and do not have sufficient funds to outright purchase physical infrastructure or real estate. The tokenization of these expensive asset classes makes many industries way less intimidating and allows newcomers to join more easily.
Why is it important?
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RWA projects often allow investors to partially own very expensive assets that they would otherwise never afford.
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Recently, many impressive success stories have been on the media with RWA tokenization applied to fine art and commercial real estate.
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One of the most prominent use cases is the Tinlake Dapp deployed on the Polkadot blockchain. It allows for quick tokenization of any real-world asset.
Ordinals powered by Bitcoin
One of the biggest trends in the crypto industry as a whole has been the increasing involvement of the Bitcoin network in the DeFi ecosystem. Projects like Stacks allow developers to deploy various software tools to work with $BTC in ways that were impossible before. Contemporary crypto users can even stake their BTC holdings. Ordinals is another example of the versatility of the blockchain industry. Some of the best community-focused NFT projects are born here in Ordinals.
Why is it important?
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Ordinals make it clear to everyone that Bitcoin is not just a new form of money. It is a powerful and flexible digital instrument that can be used for many purposes including a variety of DeFi purposes.
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The adoption of these assets further increases the rate of Bitcoin adoption by exposing it to a wider audience of potential users.
Metaverse platforms
Just like many other buzzwords, Metaverse quickly turned into a meme and was mocked by many prominent influencers and developers. However, many projects that have elements of this concept are doing quite fine and have large audiences. It is true that we don’t have to turn every single thing 0into a virtual experience, but some things benefit from being positioned as holistic metaverses. Gaming projects in particular can be enriched through this approach.
Why is it important?
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Some of the best upcoming NFT projects in 2025 are from the gaming sector of the crypto ecosystem. They use tokens for in-game items, virtual real estate, and other valuables.
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Seamless integration. With the advent of augmented reality and virtual reality devices, the merging of the real world with virtual environments is a matter of when rather than if.
Metaverse is also something that prominent tech companies are pushing heavily as the next big thing alongside AI integrations. Zuckerberg’s Meta and Cook-led Apple are trying their hardest to sell the idea of augmented and virtual reality to their customers hoping to be the biggest players in the potentially huge market. So far, the progress has been modest, and many users did not like the offerings from these tech behemoths. It does not mean, however, that no interest in metaverses at all.
NFT Marketplaces: Where the future is traded
NFT marketplaces are the beating heart of the NFT space, serving as the primary platforms where artists, collectors, and investors come together to buy, sell, and trade unique digital assets. These marketplaces have become essential for the growth and vibrancy of the NFT market, providing a stage for digital art, collectibles, and other virtual goods to reach a global audience. For artists, NFT marketplaces offer a new way to monetize their creations and connect directly with fans, while collectors and investors gain access to a diverse array of digital content and rare collectibles. As the NFT market continues to expand, these platforms are playing a crucial role in shaping the future of digital art and the broader digital world.
Leading platforms to watch
Several NFT marketplaces have established themselves as leaders in the NFT space, each offering unique features and a wide selection of NFT collections. OpenSea remains the largest and most well-known platform, providing a user-friendly experience and access to countless NFT collections across various categories. Rarible stands out for its community-driven approach, allowing users to create and govern the platform through its native token. Nifty Gateway is another major player, known for its curated drops and partnerships with high-profile artists. Other notable platforms include SuperRare, which focuses on high-quality digital art, Mintable, which simplifies the minting process, and Foundation, which supports emerging artists. As the NFT market continues to evolve, keeping an eye on these leading marketplaces is essential for anyone looking to stay ahead in the rapidly changing world of NFTs.
Innovations in NFT trading
The NFT market is constantly evolving, with new innovations transforming the way digital assets are bought, sold, and traded. One of the most exciting developments is the rise of fractional NFTs, which allow multiple individuals to share ownership of a single NFT. This innovation lowers the barrier to entry, enabling more people to participate in the NFT market and invest in expensive NFT collections that were previously out of reach. Additionally, the integration of NFTs with decentralized finance (DeFi) platforms is unlocking new possibilities, such as using NFTs as collateral for loans or earning yield through NFT staking. As the NFT market continues to grow, these advancements are making NFT trading more dynamic and accessible, opening up fresh opportunities for both seasoned investors and newcomers alike.
Decentralization and security in marketplaces
As the NFT space matures, decentralization and security have become top priorities for NFT marketplaces. Blockchain technology underpins these platforms, ensuring that the creation, verification, and transfer of unique digital assets are secure, transparent, and tamper-proof. This decentralized system not only protects users from fraud and scams but also empowers artists and collectors by giving them greater control over their digital assets. Many NFT projects are now focusing on building fully decentralized marketplaces, where users can trade digital art and collectibles with confidence, knowing that their transactions are safeguarded by robust blockchain protocols. For anyone interested in the NFT market, understanding the importance of security and decentralization is crucial to achieving success and capitalizing on the growing demand for unique digital assets in this innovative and ever-evolving space.
The best NFT investments in 2025
Interestingly enough, the overall market situation is quite promising with user activity slowly creeping back to acceptable levels and trading volumes increasing each month. NFT markets play a crucial role in facilitating the buying and selling of NFTs, making it essential for investors to understand how these markets operate, including associated fees and strategies for sustainable project growth. At the time of writing, the total market capitalization of the sector was close to $2.4 billion with 24-hour sales volume hovering above $12.5 million. Over 45,000 transactions occur daily with some assets having an impressive “floor” price of over 10 ETH. Secondary sales are also significant, as they generate ongoing revenue for creators through royalties and help sustain long-term interest in NFT projects.
Let’s have a closer look at some of the collections that should be on your list if you plan to invest in this particular sector of the DeFi ecosystem. The most successful NFT projects are often evaluated by metrics such as total sales volume, highest individual sale prices, and the number of unique buyers, which can change rapidly as the market evolves.
Bored Ape Yacht Club
This collection is still dominating the market as it managed to position itself as an elite club with access to unique projects and activities. Owning a Bored Ape NFT is widely regarded as a status symbol among collectors and celebrities, showcasing wealth and exclusivity. BoredApeYachtClub is the biggest collection by market capitalization (107,506 ETH as of the time of writing) and trading volumes reaching at times over 2,000 ETH. With just 30% of tokens on sale at any given time, there is a strong incentive for many users to hold on to their characters.
BAYC has been gaining ground during the last month despite some setbacks in Spring. With the generally positive trend in the market, we could see a massive return on this collection. It is unlikely that the Yacht Club will completely turn things around and reach their former glory. However, earning by trading or holding them is still a valid strategy.
Pudgy Penguins
As one of the top NFT projects to invest in 2025, Pudgy Penguins is doing surprisingly well. It is a great performer with over 250 ETH worth of daily sales and floor price just 3 ETH lower than BAYC. People loved Penguins for their cutesy art style and community-driven support from the issuers. All token holders enjoy additional privileges like access to events and IP licensing.
The Pudgy Penguins collection is one of the most popular clubs in the ecosystem. If you are interested in participating in interesting events and meeting like-minded individuals, it is possible to become a part of the movement for just 8.8 ETH. Usually, there are less than 250 penguins on sale so getting one is not particularly difficult but it can be!
Liberty Cats
Issued on Polygon on July 17, 2024, this collection has been a massive success quickly reaching high spots on multiple rankings and becoming one of the top NFT projects in 2025. Despite some controversies surrounding the launch and exceedingly high trading volumes reaching at times 120,000 MATIC, it is still a prominent collection that should be tracked by people interested in this ecosystem.
One of the questions about Liberty Cats is whether it will remain among top performers after the initial hype dies down and the market settles down. If it manages to stabilize and retain some value, even conservative investors may start looking at it as a potential target asset. The issuance of collections on Polygon is often accompanied by doubts from the community and experts.
DeGods
Another interesting collection that has been doing quite well even after the conclusion of the crypto winter is DeGods. As of the time of writing, sales volumes were close to 430,000 SOL with floor prices hovering above 30 SOL. The project was launched in September 2021 and managed to attract significant attention from investors and enthusiasts. To this day, its performance is impressive and user activity high.
The founders are engaging with the community and offer a wide range of perks to holders. Events are hosted at least once a month with relatively high attendance. People holding tokens are invited to parties, sports watching, and other social gatherings.
Is it worth investing in?
Many retail traders used to advanced tools like an automated trading bot or AI-assisted statistical arbitrage to improve their in-market activities will probably stay away from collections with low volume of sales. Despite the best efforts from enthusiastic communities, these collections remain niche and do not attract the necessary level of attention from capital holders. Just like trading watches is a thing only among geeks and ultra-wealthy, non-fungible tokens are attracting a very special kind of investor. It is important to understand the volatile nature of the NFT market, as prices can fluctuate rapidly and unpredictably, increasing the risks for investors.
Newcomers without any prior experience should also be very careful and never trust the hype surrounding some of the projects often launched by influencers and celebrities. Conducting thorough research is essential to avoid falling victim to scam projects, as the NFT space is not immune to fraudulent schemes. Use platforms like Twitter to follow project updates, community discussions, and insights from experienced collectors. These don’t necessarily become rug pulls, but the chances of them being scams are quite high. A better approach is to track already established projects and buy if you feel confident about their futures.
