In a landmark moment for the cryptocurrency sector, non-fungible tokens (NFTs) have surpassed decentralized finance (DeFi) in daily active wallets for the first time. Data from July 2025 shows NFT platforms recording 3.85 million daily active wallets, edging out DeFi’s 3.84 million.
While the margin was slim, industry analysts say the shift reflects a structural change in blockchain user behavior, with growing interest in digital collectibles, tokenized assets, and creative applications beyond traditional finance. The development underscores NFTs’ maturation from niche speculative assets to active drivers of blockchain adoption.
DeFi Still Holds Record Value Despite NFT Surge
The surge in NFT activity coincided with a record $270 billion in DeFi’s total value locked (TVL), boosted by the rising popularity of tokenized stocks and advanced decentralized applications. DeFi remains a powerhouse in terms of financial utility, but NFT platforms have seen explosive growth in user engagement and transaction volumes.
Blur, one of the leading NFT marketplaces, reported capturing 80% of daily NFT trading volume in July and pledged further user-focused upgrades. This, experts say, signals a more competitive and sophisticated NFT ecosystem that now rivals DeFi in scale.
Ethereum’s Network Hits Record Activity Levels
Ethereum, the blockchain backbone for both sectors, recorded a 70% increase in onchain transaction volume in July compared to June, reaching $238 billion. The network processed an unprecedented 1.74 million daily transactions, surpassing its previous peak set in 2021.
Activity was fueled by simultaneous growth in DeFi, NFTs, and smart contract deployments, reinforcing Ethereum’s role as a foundational layer for next-generation finance and digital ownership solutions.
Cool Cats Collection Sees Sharp Price Spike
Among NFT collections, Cool Cats saw one of the month’s most dramatic moves, with its floor price jumping 48% in a single day to above 0.74 ETH. July’s total trading volume for the collection hit $112 million, reflecting deeper liquidity and stronger market demand for high-profile NFTs.
Analysts note that such surges are no longer isolated events but part of a broader trend in which NFTs are increasingly integrated into financial markets and even investment portfolios.
Ethereum Market Cap Surpasses Netflix
The momentum in Ethereum-based activity extended into early August 2025, when Ethereum’s market capitalization overtook that of entertainment giant Netflix. The achievement sparked conversations about Ethereum’s potential to challenge traditional financial heavyweights such as Mastercard.
Industry observers point to recent scalability upgrades and reduced gas fees as key factors attracting both institutional and retail interest. These improvements have enhanced Ethereum’s competitiveness as a platform for programmable money and blockchain-powered financial services.
Opportunities and Risks Ahead
While the current trajectory is positive, the market faces potential headwinds. Volatility in cryptocurrency prices, looming regulatory scrutiny, and macroeconomic factors such as interest rate changes could temper growth.
Market strategists advise traders to monitor Ethereum’s price levels closely, especially key resistance and support zones, to gauge the sustainability of recent gains. Meanwhile, the evolving relationship between NFTs and DeFi will remain a critical barometer for broader blockchain adoption and sentiment.
