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Atis Shala
Atis is a senior analyst and community lead with four years of experience in crypto. He has a bachelor from the Rochester Institute of Technology.
Are NFTs Still a Thing in 2025?
Long story short, yes – NFTs are still a thing. There’s not a lot of volume in the NFT sector at the moment, at least when we compare it to the volume it had back in 2021. However, blue-chip NFTs like Pudgy Penguins have been making huge moves in the past few months. They even launched their own memecoin, airdropping Pudgy holders crazy amounts of $PENGU.
Moving on, the blue-chip NFT collection that everyone is fond of, The Bored Ape Yacht Club (BAYC), developed by Yuga Labs, is still quite popular. Despite the decline of the NFT sector, Yuga Labs has significantly expanded its ecosystem in the last few years. Beyond the original NFT collection, BAYC has introduced several new products and games to enhance community engagement and broaden its brand presence.
In the gaming sector, Yuga Labs launched “Project Dragon” in 2024, marking its first move into the metaverse gaming world. This 3D action game offers large-scale multiplayer battles and incorporates play-to-earn elements. The team aims to reward participants for their contributions to the Otherside metaverse – the center of the whole BAYC brand.
Additionally, BAYC ventured into branded merchandise through collaborations with renowned companies. In September 2024, they partnered with BMW to unveil a Bored Ape-themed luxury car, blending BAYC’s aesthetics with BMW’s craftsmanship. Concurrently, they collaborated with the Bored Ape Brewing Co. to produce canned beer featuring the iconic ape designs, offering fans a tangible connection to the brand.
These initiatives, alongside previous endeavors like the Mutant Ape Yacht Club and the Bored Ape Kennel Club, demonstrate BAYC’s commitment to diversifying its offerings and solidifying its position in both the digital and physical realms.
Remember when a digital cartoon of a bored ape could buy you a Tesla? Now, you’d be lucky if it gets you a coffee. It’s still worth tens of thousands but you get my point. So, what happened to the NFT hype that once had all the attention?
Why Did NFTs Fall Off?
First, let’s talk about oversaturation. In 2021 and 2022, everyone and their grandma was launching NFTs. From celebrities dropping collections – Donald Trump as well – to companies tokenizing everything from pixel art to selfies, the market became a chaotic market of overpriced JPEGs. With no quality control, the hype wore off quickly.
Second, the speculative frenzy that pumped NFT prices deflated just as quickly. Many people bought NFTs not for their artistic or utility value but to flip them for a quick profit. When the bear market hit in 2022, buyers disappeared, leaving holders clutching their digital rocks, wondering where it all went wrong. Obviously, when you buy an NFT that promises nothing other than an upgraded version of a JPEG, you’ll probably be left holding the bag.
Third, utility – or the lack thereof. NFTs promised revolution: access to events, exclusive perks, or other real-world benefits. But in practice? Most projects fell short, delivering nothing more than bragging rights for owning a sparkly image. You can only flex your “unique” JPEG on Twitter for so long before people stop caring.
Then there’s the tech side. Gas fees were brutal, scams were rampant, and let’s face it – explaining NFTs to the average person was like teaching calculus to a 3-year-old. Combine that with regulatory scrutiny and environmental concerns about blockchains, and the hype train crashed.
So, why did NFTs fall off? They flew too close to the sun, or maybe the blockchain. But don’t count them out just yet, NFTs are currently evolving beyond JPEGs into real-world use cases.
