NFT Market Recovery: Bubble Reappearance or Structural Shift?

Recently, the NFT market has shown strong signs of recovery, with trading volume increasing by 78% against the trend, reaching 14.9 million transactions. This phenomenon has sparked reflections on the future direction of the market: are we witnessing the formation of another bubble, or is the market undergoing a structural transition from "high prices and low trading" to "inclusive participation"? Is the driving force behind this the resonance effect created by institutional funds re-entering the market and the return of retail users? Let us delve into this issue.

Comparison between the Trendy Toy Market and the NFT Market

The rise and fall of the潮玩 market reveals a cruel reality: the value system built solely on scarcity marketing and celebrity effects is extremely fragile. However, the recovery trajectory of the NFT market during the same period shows different characteristics. Although the overall trading volume of the industry remains relatively low, at about $887 million, the market structure is undergoing profound changes. Blue-chip NFT projects continue to lead, with the floor price of CryptoPunks rising by 53% in July, breaking through 47.5 ETH (about $180,000). At the same time, utility NFTs, especially those representing real-world assets (RWA), saw a 29% increase in trading volume month-on-month. This differentiation reflects the market's insistence on the value of scarcity on one hand, and on the other hand, it also heralds the broad prospects of utility NFTs.

Technical Advantages of NFT

Unlike traditional trendy toys, the value foundation of NFTs has undergone a qualitative change. Blockchain technology endows NFTs with immutability and proof of ownership, fundamentally addressing the long-standing authenticity verification challenges in the art and collectibles market. NFTs are not only carriers of digital artworks but have also become a bridge connecting real assets and the digital world. The rise of RWA NFTs is the best evidence, indicating that NFTs are penetrating from digital art into the financial asset field.

Redefining Scarcity

NFTs create scarcity through blockchain technology, each NFT has a unique token ID and metadata, with its scarcity enforced by code rather than relying on marketing rhetoric from the issuer. This technology-backed scarcity is more credible than the "limited edition promises" of traditional toy manufacturers. Moreover, NFTs also offer additional functions and value, such as community participation rights and business collaboration opportunities, which are difficult for traditional toys to match.

The Practical Value of NFTs

The application scenarios of NFTs are continuously expanding, from digital tickets and copyright proof to financial derivatives, they can be found in various economic fields. The rapid growth of RWA NFTs is a manifestation of this trend. NFTs also solve the circulation problems of the traditional collectibles market, allowing for seamless transfers between any digital wallets globally, greatly reducing transaction costs. Data shows that from 2022 to 2025, the average trading time in the NFT secondary market has decreased from 48 hours to 15 minutes, significantly improving liquidity.

Future Outlook of the NFT Market

Although the recovery of the NFT market has raised concerns about a bubble, equating it directly with the潮玩 bubble ignores the essential differences in technological innovation and application expansion that NFTs represent. The rise in NFT prices is often accompanied by the expansion of application scenarios and the improvement of infrastructure, which provides a solid foundation for its value growth.

In the future, the NFT market may further diversify. Purely digital artworks will continue to rely on scarcity narratives, while utility NFTs are expected to find broader application in areas such as finance, supply chain, and copyright. Data shows that in the second quarter of 2025, the transaction volume of utility NFTs accounted for 38%, an increase of 12 percentage points compared to the same period last year, indicating that NFTs are shifting from speculative tools to practical tools.

Conclusion

The recovery of the NFT market should not simply be seen as the reappearance of a bubble, but rather as the beginning of a new phase in the digital economy. Compared to traditional trendy toys, NFTs have opened up new ways of value creation through blockchain technology. Although the market may still face fluctuations, NFTs are redefining the boundaries of digital assets and becoming an important link between the real and digital worlds. In the long run, technological innovation and practical value will be key factors supporting the development of the NFT market.