NFT Market Outlook: Why Utility May Shape The Next Growth Phase

Here’s a look at the current NFT downturn, the rise of utility-driven projects and what traders should watch as the market changes.

The NFT market has moved through several stages since its early boom.

The current phase is now showing a heavy drop in sales and valuations. Despite this though, a quieter trend is taking shape.

Utility-focused NFTs, built around practical uses are becoming more visible as speculative items fade.

This trend has created new questions for traders who want to understand where real value may appear next.

The NFT Market Correction

The NFT market once surged amid heavy speculation. However, the tone appears to have changed through 2025. Sales reached around $546 million in October after a short rebound, yet the overall market cap dropped from $683.9 million to $608.6 million within a year.

This 11% drop shows how digital collectables no longer attract the same level of excitement.

Average prices fell from $321 at the start of the year to $54 in October. These lower prices opened the door to more buyers who cared about function rather than status.

So far, OpenSea now handles about 90% of all NFT trading, and most activity seems to be centered on projects built on real utility.

The NFT winter deepened further in November as CryptoSlam data showed that monthly sales fell to $320 million. This was almost half the amount recorded in October.

Even worse, early December added only $62 million in sales during the first week. These numbers show that interest in speculative collectables keeps shrinking.

Market caps across major collectables support this view. According to CoinGecko, the total NFT market cap fell to $3.1 billion, far below the $9.2 billion peak in January.

Blue chip collections followed the same pattern as CryptoPunks slipped 12% in 30 days. Bored Ape Yacht Club fell 8.5% and Pudgy Penguins dropped 10.6%. Several art collections also recorded double-digit losses.

Only a few stood out, like Infinex Patrons which rose 14.9%. On the other hand, Autoglyphs climbed 20.9% and outperformed the entire leaderboard.

Why Utility NFTs Are Holding Up

Utility-driven NFTs gained attention as speculative assets lost ground. Gaming NFTs made up 38% of all transactions during the year and this part of the market held a value of $4.8 billion only last year.

Sports NFTs also grew fast, recording a 337% surge in trading volume during Q3 of this year. Notably, their appeal comes from direct use cases like ticket access, loyalty rewards or in-game items.

This being said, projects based on simple visuals or status symbols no longer attract steady buyers.

Utility projects, on the other hand, offer benefits that users can apply to daily activities, events or entertainment. This trend has created room for growth even when the wider market struggles.

Comparing Speculative And Utility Markets

Speculative NFTs like Bored Ape Yacht Club and CryptoPunks saw a 95% drop in trade volume from their 2021 peak. CryptoPunks floor prices fell 61% in ETH terms.

In all, these numbers show how fast speculation can fade.

Utility NFTs did not face the same level of decline. Projects like Metal Valley introduced items that hold use both inside and outside games. These items let players own digital assets with real functions. In short, they create long-term demand instead of short-term frenzy.

Related Reading: Why September 20 Matters for Crypto: It’s International NFT Day

Are Utility NFTs A Buying Opportunity?

Market corrections tend to show which assets can survive a downturn. Notably, many speculative NFTs became illiquid during the current slump. Value fell faster than sellers could react, and buyers showed little interest in returning.

Utility NFTs followed a different trend though. Projections indicate that the global utility NFT market could reach $8.5 billion by 2031. In all, growth of this scale may offer room for early traders who understand how to select strong projects.

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