NFT Market Rebounds, Set to Reach $247B by 2029
The NFT market is showing signs of recovery in 2025 but remains far below the 2022 peak. A report from Coinlaw.io forecasts the global NFT market to exceed $60 billion in 2025 and grow to $247 billion by 2029, representing a 42% CAGR. Gaming and digital art account for 38% and 21% of NFT transactions respectively.
Venture capital has poured $4.2 billion into NFT projects in 2025, driven by new use cases like real estate and phygital tokens. Luxury brands fuel a 60% rise in phygital token volumes, while real estate NFTs surpass $1.4 billion in transaction value. Financial firms such as Goldman Sachs and JPMorgan explore tokenizing digital assets. Canary Capital filed for a Pudgy Penguins ETF blending PENGU tokens and NFT collectibles.
In the NFT market, unique active wallets now outnumber those in AI and social dApps. Trading metrics show NFT sales rising since January, even as trading volumes dipped by $419 million. July and August added $1 billion to market cap and 90,000 wallets. Despite this recovery, the current $6 billion market cap is 76% below the 2022 high of $24.7 billion.
Bullish
This report highlights multiple bullish signals for NFT traders. A projected 42% CAGR to $247 billion by 2029 indicates strong long-term growth potential. Institutional and VC investments totaling $4.2 billion in 2025 demonstrate increasing confidence. Emerging use cases—real estate NFTs and phygital tokens—point to diversified demand. Unique active wallet dominance and the rebound in sales and wallet counts suggest renewed retail interest. Although current market cap remains 76% below the 2022 peak, the combined factors of rising transaction volumes, expanding ecosystem applications, and major financial institutions’ involvement underpin a positive outlook. Traders may view this as an opportunity to accumulate positions ahead of anticipated market expansion.