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The NFT market rebounded sharply in October 2025, with volume and sales gains that signal renewed activity across chains, according to the DappRadar State of the Dapp Industry report.
What drove the October 2025 surge in the NFT market?
October saw a clear uptick: NFT trading volume reached $546 million, a 30% month-over-month increase, while sales hit a 2025 high of 10.1 million transactions. Trader counts also rose slightly, with 820,945 NFT traders active onchain.
Part of the surge came from lower entry prices. Average NFT prices fell from about $321 in January to roughly $54 in October, making collections more accessible. As a result, more users entered marketplaces and executed multiple trades.
Market composition shifted: projects offering clear utility, onchain experiences, or potential airdrops outperformed pure art drops.
Notably, Base overtook Solana and Polygon in October NFT volume, reaching $88 million on the chain while Ethereum stayed dominant at $263 million. Lower mint and gas costs on Layer0s, combined with marketplace features that reward repeat buyers, explain much of Base’s October outperformance.
How selective are users and which sectors led dapp activity?
Overall dapp engagement softened: daily Unique Active Wallets averaged about 16 million, down 3% month-over-month. Users appear more selective, favouring dapps that deliver ongoing value rather than short-lived speculation.
Blockchain gaming confirmed its dominance, accounting for 27.9% of dapp activity and drawing over 4.5 million daily wallets. In fact, gaming was the only sector to grow month-on-month, sustaining engagement through fresh experiences and in-game economies.
Other sectors contracted: DeFi averaged 2.9 million dUAW (down 5%), AI dapps recorded about 2.2 million (down 4%), while social dapps fell more sharply. Nevertheless, NFTs recorded 3.2 million dUAW, broadly steady month-over-month.
How did daily active wallets shift across sectors?
Gaming growth remained modest but persistent, helped by ongoing live operations and regular content drops.
In contrast, social and many DeFi dapps saw users concentrate on products offering tangible yield or clear utility. Retention tied to utility continued to be a decisive factor for sustained activity.
What regulatory headwinds affected DeFi and TVL?
DeFi faced renewed scrutiny in October as U.S. lawmakers debated classification and oversight of decentralized services.
A Senate Democrat proposal would treat certain front-end operators as regulated intermediaries, require KYC/AML and give Treasury delisting power for protocols deemed insufficiently decentralized.
Regulatory uncertainty coincided with a decline in capital: DeFi total value locked fell 6.3% month-over-month to $221 billion. Early November data showed an additional drop to approximately $193 billion in the first five days of November.
That policy debate contrasted with alternative bills in the House that favour a lighter regulatory touch, leaving a fragmented framework and heightened market caution through 2026.
Which institutional moves and ETFs reshaped October flows?
October brought several institutional developments that shifted capital into regulated vehicles and banking partnerships. Most notably, the first U.S. Solana ETFs launched with significant seed capital and daily flows.
Bitwise Solana Staking ETF (BSOL) debuted on October 28 with $222 million in seed capital, $56 million in first-day volume, and a 0.20% fee waived initially.
Grayscale Solana ETF (GSOL) followed on October 29 with a 0.35% fee and smaller opening inflows of about $1.4 million.
At the same time, major banks partnered with crypto firms: Citigroup and Coinbase moved to develop institutional payment rails, while Anchorage Digital Bank selected U.S. Bank to custody reserves backing fully collateralized stablecoins.
S
uch bankingcrypto link-ups materially reduce settlement friction for institutional clients and are often a precursor to increased flows into ETFs and custody products, reinforcing industry maturation, according to reporting by Reuters.
What major NFT drops and security incidents defined October?
October mixed high-profile retail collaborations with a relatively low month for losses. Brand moves included a Yuga Labs x Amazon Boximus drop priced around $66 on October 30 and a Doodles x Froot Loops retail release of 500 cereal boxes at $50 each on October 1, minted on Base.
Security-wise, October recorded about $38 million lost to hacks across 11 incidents, a 76% drop from September and the second-lowest total of 2025. Top events included Hyperliquid (~$21 million, Oct 10), Garden Finance (~$10.811 million, Oct 30), and Typus Finance (~$3.44 million, Oct 15).
Which projects led trading volume in October?
DX Terminal rose to second place by trading volume, surpassing Bored Ape Yacht Club. That shift highlighted demand for projects with embedded utility, such as Courtyard, which links NFTs to authenticated physical goods.
What does Octobers data imply for the NFT market outlook?
Octobers mix of higher NFT trading volume, record sales, and lower average prices suggests a market widening through participation rather than price spikes. That pattern is encouraging for long-term adoption, but it increases focus on product utility and retention.
Moreover, AI funding dominance and institutional ETF launches show capital reallocating across Web3. In Q3 2025, nearly 46% of global VC flowed into AI projects, and several AI dappslike Kindred Labs and Vibelyjoined the top narratives.
As a result, Web3 now balances retail-driven NFT activity with deeper institutional integrations and regulatory scrutiny. The coming months will test which dapps convert volume into durable value.
For full dataset references and rankings, see the DappRadar State of the Dapp Industry report.
