The rise of NFTs over DeFi in daily active wallets has marked a significant milestone in the adoption of Web3 technology. In July 2025, NFT trading volumes nearly doubled to $530 million, with average prices reaching $105. This surge in activity signals a renewed interest in digital ownership, indicating a shift in user behavior despite the market still recovering from previous hype cycles.
Key Takeaways:
1. NFTs surpassed DeFi in daily active wallets, with 3.85 million interactions.
2. Trading volumes surged by 96% in July 2025, with average prices doubling.
3. Platforms like Blur and OpenSea played a crucial role in driving market activity.
4. DeFi still maintains dominance in liquidity, with $270 billion TVL.
5. NFTs are regaining investor confidence as a driver of Web3 engagement.
NFTs Outpace DeFi in Daily Users
The increase in daily active wallets engaging with NFT platforms, surpassing that of DeFi, reflects a significant shift in user behavior. The rise in participation is not solely driven by high-end art sales but also by gamified platforms, community-driven collections, and interactive trading activities. This shows the resilience of NFTs and a broader appeal beyond passive yield farming.
What the Numbers Say About NFT Growth
According to DappRadar, the NFT market has experienced a substantial increase in trading volume, reaching $530 million in July, a 96% rise. The doubling of average sale prices indicates a healthy market with active participation from wallet users. The market is diversifying beyond high-profile assets, inviting new participants and fostering innovation.
Blur and OpenSea Role Fueling the NFT Revival
Blur and OpenSea have played a crucial role in boosting momentum in the NFT market. Blur’s incentive programs attract serious traders, while OpenSea remains a popular choice for entry-level buyers. This balance between professional trading platforms and beginner-friendly options contributes to market growth, similar to the dynamics seen in the early days of crypto exchanges.
$270 Billion in DeFi Liquidity vs NFT Engagement
Despite NFTs outpacing DeFi in daily users, DeFi maintains its stronghold with $270 billion in total value locked, a 30% increase month-over-month. Ethereum continues to dominate with 63% of this liquidity, supported by the growth of layer-2 solutions like Arbitrum and Optimism. The relationship between DeFi and NFTs is complementary, with DeFi offering yield generation and liquidity management while NFTs drive cultural engagement and user interaction.
What This NFT Surge Means for Traders, Builders, and Early Adopters
The current NFT market emphasizes utility, with integration into gaming, event ticketing, and digital identity beyond crypto-native circles. Traders can benefit from higher liquidity and increased chances for price discovery, while builders can reach a larger, more active audience to test and grow their ideas. Early adopters from previous cycles now hold stronger community positions, acting as a form of soft capital for project growth.
Can NFTs Maintain Their Momentum Through 2025 and Beyond?
Sustaining momentum in the NFT market will require stronger on-chain utility, reduced onboarding friction, and integration with mainstream applications. While NFTs remain effective at capturing attention and driving participation, expanding real-world use cases will be crucial for long-term growth. Market observers will continue to monitor project traction, user activity, and the balance between speculative trading and functional utility to determine the sustainability of the NFT comeback as a growth driver for Web3.