An NFT, or Non-Fungible Token, is a unique type of digital asset that can represent ownership of almost anything, from artwork, music, and videos to in-game items or even virtual land.
“Non-fungible” means it cannot be exchanged on a one-to-one basis for something of equal value, unlike currency or Bitcoin, where every unit is identical.
These tokens exist on blockchains, such as Ethereum, which serve as public ledgers that record every transaction, transfer, and ownership detail.
Is NFT Activity Overtaking DeFi?
The key difference between an NFT and simply saving a digital image is proof of ownership. Even if someone downloads or screenshots the file, blockchain records still recognise the rightful owner, much like holding the official certificate for a rare physical collectable.
Some NFTs also grant benefits such as VIP event access, exclusive memberships, or in-game advantages, adding utility beyond visual appeal.
In many ways, NFTs represent the modern evolution of collectables, being verifiable, tradable, and seamlessly blending art, gaming, and blockchain technology.
July brought a striking shift in blockchain user behaviour. While DeFi platforms recorded unprecedented liquidity, NFTs attracted more active users.
NFT-focused applications saw slightly higher engagement than DeFi, despite DeFi’s total value locked (TVL) reaching a record $270 billion.
According to DappRadar, DeFi’s TVL grew by 30% compared with the previous month, driven largely by enthusiasm for tokenised stocks. The number of active wallets trading these tokenised stocks rose from about 1,600 to over 90,000, boosting their market capitalisation by 220%.
Yet the bulk of user activity was in NFTs. Trading volumes in July increased by 96% to $530 million, and the average NFT sale price doubled to approximately $105 as more participants entered the market.
Out of 22 million daily active wallets across blockchain applications, about 3.85 million interacted with NFT platforms, slightly surpassing DeFi’s user count.
Source: MagicEden
On Ethereum, marketplace Blur maintained dominance, accounting for up to 80% of daily NFT trading volume.
OpenSea remained the leader for active traders, with around 27,000 users, while Zora gained momentum thanks to its creator-oriented Layer 2 network and its $ZORA token, which offers cost-effective minting.
Prominent brands also continued to test NFT adoption. Nike’s.SWOOSH initiative partnered with EA Sports for virtual sneaker releases, while luxury names such as Louis Vuitton, Rolex, and Coca-Cola China explored authentication and collectable applications.
Overall, July’s NFT market volume increased 36% from June’s $389 million, although it still fell short of the $997 million peak reached in January 2025.
Ethereum-based collections led the market, with CryptoPunks generating $69 million in sales and Pudgy Penguins following closely with $55 million.
Pudgy Penguins experienced a 65% increase in their floor price, outperforming major collections like Bored Ape Yacht Club (BAYC). Their associated PENGU token has also been performing strongly.
On other blockchains, Polygon and Bitcoin NFT activity held steady, while BNB Chain saw a significant decline. Market sentiment suggests NFTs are maturing, with leading investors acquiring high-value assets and focusing on sustainable projects rather than short-term speculative gains.
The Changing Shape of the NFT Market
The shift in user interest from DeFi to NFTs raises questions about where blockchain adoption is heading next.
While DeFi’s appeal lies in its ability to unlock new financial tools, the NFT market has tapped into a broader cultural and creative audience, blending technology with art, gaming, and brand engagement.
Blur’s continued dominance in trading volume suggests a concentration of high-value transactions, while OpenSea’s strong active user base points to a broad, diverse community of traders.
Zora’s growth demonstrates the market’s appetite for platforms that empower creators with lower fees and more control.
Brand collaborations are further driving NFT awareness. Nike and EA Sports’ partnership for virtual sneakers highlights how NFTs can merge gaming and fashion, while projects from Louis Vuitton, Rolex, and Coca-Cola China reinforce their potential for luxury authentication and digital exclusivity.
Ethereum’s continued leadership in NFT sales underlines its robust infrastructure and active community. Collections such as CryptoPunks and Pudgy Penguins show that established projects can still attract strong sales and price growth, even in a competitive market.
Pudgy Penguins’ surge, in both floor price and token performance, reflects a growing focus on project branding and community engagement.
Cross-chain dynamics remain mixed. While Polygon and Bitcoin NFTs have maintained steady activity, the sharp drop on BNB Chain suggests uneven adoption and possibly shifting user preferences.
The move towards securing high-value, long-term assets points to a more mature market, where speculation gives way to strategic investment.
Conclusion
July’s blockchain activity paints a clear picture: while DeFi is achieving record liquidity, particularly through tokenised stocks, NFTs are capturing user attention and engagement.
The NFT market’s rise in trading volume, the doubling of average prices, and growing participation from major brands indicate that this segment is evolving beyond simple digital art sales.
As Ethereum-based collections continue to lead and cross-chain developments reshape the market landscape, NFTs are positioning themselves as a long-term fixture in the blockchain ecosystem.
The trend towards quality projects and valuable digital assets suggests this growth may be more sustainable than previous surges. In this landscape, both DeFi and NFTs are thriving, but right now, NFTs hold the cultural momentum.
Contributor: Lydicius