SuperEx丨DeFi and NFTs May Make a Comeback in 2025
Over the past few years, DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens) have experienced rapid growth followed by brief downturns. However, with advancements in blockchain technology and changes in the market environment, multiple signs indicate that DeFi and NFTs may experience another growth wave in 2025. This is not just a hope for market recovery but also a reflection of confidence in the future of the decentralized economy.
Market Review: From Highlights to a Cooling Phase
2021 was the peak for DeFi and NFTs, capturing the attention of countless investors and developers. According to data from DappRadar, DeFi’s Total Value Locked (TVL) reached an all-time high of over $180 billion in November 2021. Decentralized exchanges like Uniswap became essential tools for investors, while lending protocols like Compound and Aave created entirely new financial services.
At the same time, NFTs took off globally. In 2021 alone, the total transaction volume for NFTs reached $25 billion, continuously attracting mainstream attention. Art, gaming assets, virtual land, and even music rights were minted as NFTs, completely revolutionizing the definition of traditional assets.
However, the good times didn’t last. Starting in 2022, due to changes in the macroeconomic environment and the side effects of market speculation, the entire crypto industry entered an adjustment phase. By 2023, DeFi’s TVL dropped to around $40 billion, while NFT’s monthly transaction volume declined from the peak of $2 billion to below $500 million. This phase of market cooling not only dampened investor confidence but also prompted internal reflection within the industry.
Current Signs: The Prelude to a Revival
Despite the market downturn, several trends in 2024 suggest that DeFi and NFTs have not lost their value; in fact, they are gathering strength during this adjustment phase, preparing for a potential breakout.
Traditional Financial Giants Entering the Space
In 2024, traditional financial institutions are showing unprecedented interest in the crypto space.
PayPal launched its stablecoin PYUSD, opening new payment use cases for crypto and further promoting blockchain adoption.
BlackRock and other traditional financial giants have applied for Bitcoin spot ETFs, which have received preliminary approval by the end of 2024. This move not only brings more liquidity to the crypto market but also shows institutional confidence in blockchain technology and assets.
Data shows that by the end of 2024, institutional investors make up 28% of the crypto market, up from 10% in 2020.
Increased On-Chain Activity
According to Glassnode data, Ethereum’s daily transaction volume grew by 15% in the second half of 2024, while Layer 2 solutions like Arbitrum and Optimism saw a 50% increase in user numbers year-on-year. These infrastructure improvements not only reduce transaction costs but also significantly enhance the user experience.
Diversification of NFT Use Cases
Although the trend of profile picture NFTs has cooled down, functional NFTs are gradually rising. According to a report from Immutable X, over 60% of new NFT projects focus on areas such as gaming, digital identity verification, and ticket sales. For example, many well-known brands are digitizing membership management through NFTs, further expanding the practical use cases of this technology.
Growth of the Web3 User Base
With increased education and optimized user interfaces, the number of active Web3 users worldwide has surpassed 400 million. These new users’ demand for DeFi and NFTs not only injects new vitality into the market but also provides potential support for future technological innovations.
Analysis: Why 2025 May Be a Turning Point?
Several factors suggest that 2025 could be the key year for a full revival of DeFi and NFTs:
Improved Macro-Economic Environment
The U.S. Federal Reserve initiated a new round of interest rate cuts by the end of 2024, which may ease the pressure on global risk assets. According to historical trends, the crypto market typically performs well 6–12 months after a rate cut. In 2025, DeFi and NFTs, as representatives of emerging markets, may benefit from a more relaxed monetary environment.
Technological Advancements and Ecosystem Upgrades
In the DeFi space, interoperability between protocols has significantly improved. Cross-chain technologies like Cosmos and Polkadot have matured, allowing users to seamlessly transfer assets across multiple chains.
In the NFT space, the combination of generative AI and blockchain is giving rise to new types of digital art and assets. According to data from DappRadar, sales of generative art NFTs grew by 200% year-on-year in 2024, injecting fresh energy into the market.
Return of Investor Confidence
The market performance in 2024 has provided investors with more data points. With institutional capital involved, market confidence has gradually recovered, and this trend could further expand in 2025.
According to Messari’s forecast report, the Total Value Locked (TVL) in DeFi is expected to surpass $100 billion again in 2025, with more than 40% of the growth driven by Layer 2 solutions. The NFT market’s transaction volume is projected to recover to over $15 billion, with the rise of functional NFTs and blockchain gaming being the main driving forces.
Conclusion
Based on current signs, 2025 may be another landmark year for DeFi and NFTs. This is not only the inevitable result of technological development but also a sign of a maturing market. For investors, early positioning in quality projects and staying abreast of industry trends will be crucial to seizing the opportunities in the next growth phase. Let us look forward to the exciting performance of DeFi and NFTs in the upcoming year!
