NFT Trading Surges Past DeFi Despite TVL Record
DeFi's TVL Hits Record, But NFTs Steal the Show
Decentralized finance (DeFi) experienced significant growth in July, with total value locked (TVL) reaching a record $270 billion. This surge was partially fueled by the increasing popularity of tokenized stocks.
Data from DappRadar indicates a 30% month-over-month increase in DeFi TVL. Active wallets interacting with tokenized stocks also saw a substantial rise, jumping from approximately 1,600 to over 90,000, resulting in a 220% increase in their market capitalization.
NFT Market Activity Outpaces DeFi
While DeFi saw substantial liquidity growth, the spotlight shifted towards non-fungible tokens (NFTs). NFT trading volumes soared by 96% to $530 million in July. The average NFT price also doubled to around $105, indicating increased user engagement and interest.
Approximately 3.85 million of the 22 million daily active wallets interacted with NFT decentralized applications (DApps) in July, slightly surpassing the number of active DeFi wallets.
- Blur dominated the NFT marketplace activity, capturing up to 80% of daily NFT volume.
- OpenSea led in active users, with roughly 27,000 traders.
- Zora gained traction with its creator-centric layer 2 solution and the $ZORA token, facilitating low-cost minting.
Major Brands Embrace NFTs
Prominent brands continue to explore the potential of NFTs. Examples include:
- Nike.SWOOSH partnering with EA Sports for virtual sneaker drops.
- Louis Vuitton, Rolex, and Coca-Cola (China) launching authentication and collectible pilot programs.
Resurgence of OG NFT Collections
There's a renewed interest in original NFT collections such as CryptoPunks. Data from NFT Floor Price shows that the Ethereum-based collection has increased by over 25% in the past month.
NFT Market Still Below 2021 Peak
Despite the July rebound, the NFT market remains significantly below its peak in 2021. A DappRadar report indicates that NFT trading volume dropped 19% year-over-year, with sales counts declining by 18%, marking 2024 as one of the weakest years since 2020.
H1 2025 data from CryptoSlam further highlights the slow recovery, with NFT sales totaling $2.82 billion, down 4.6% from the second half of 2024.
While July showed positive signs, the market is still far from the trading volumes in the tens of billions seen in 2021. For developers looking to capitalize on these trends, Codeum offers blockchain security and development services, including smart contract audits and KYC solutions.