After a difficult stretch following the NFT crash of 2022, the market for non-fungible tokens (NFTs) is showing signs of recovery. Sales volumes have grown 14% in 2025, suggesting renewed interest in digital collectibles and blockchain-powered experiences. Alongside this rebound, gaming tokens linked to blockchain such as SAND (The Sandbox), AXS (Axie Infinity), and GALA (Gala Games)  are beginning to gain attention again. Many analysts believe that gaming tokens could be the next major sector to experience strong growth, thanks to improvements in “play-to-earn” models and collaborations with well-known brands.

Signs of Recovery in the NFT Market

The overall NFT market is currently valued at around $6 billion (as of September 2025), and activity has clearly picked up. Trading volumes alone reached $1.2 billion in August, a sharp improvement compared to the market lows of 2024.

One of the biggest drivers of this rebound has been crypto gaming, which now accounts for about 38% of all NFT transactions worldwide. Unlike digital art NFTs that rely mostly on speculative buying, gaming NFTs are tied directly to in-game items, characters, and land, giving them practical use. This utility makes them more resilient and attractive to players as well as investors.

According to industry forecasts, the NFT gaming market could expand at a 24.8% compound annual growth rate (CAGR), potentially reaching $44.1 billion by 2034. These figures highlight why tokens tied to gaming ecosystems are starting to gain momentum again. Several major gaming tokens have already shown signs of a rebound in recent weeks:

• SAND (The Sandbox) and AXS (Axie Infinity) both rose between 5–7%.
• GALA (Gala Games) climbed about 7%, reaching $0.044.

While these gains are modest compared to past bull markets, they signal renewed confidence. Investors and gamers alike are watching closely to see if this momentum will build into something larger.

Major Brands and Projects Driving Growth

Another key reason for optimism is the involvement of global brands and professional game studios.

• The Sandbox has partnered with fashion house Gucci, hosting virtual events that blend luxury fashion with digital spaces. These collaborations help introduce NFTs to mainstream audiences who may not otherwise engage with blockchain technology.
• Axie Infinity continues to expand its eSports ecosystem, with a market capitalization of about $512 million. Competitive tournaments keep the community engaged while attracting sponsorships and media attention.
• Gala Games is developing Mirandus, a high-quality (“AAA”) game built on its custom GalaChain network. GalaChain allows cheaper and faster transactions compared to Ethereum, helping reduce player costs. Gala Games itself holds a valuation of around $907 million, reflecting strong market confidence.

These projects demonstrate how gaming NFTs are evolving beyond small experimental titles into ecosystems with brand partnerships, competitive gaming, and large-scale development.

Challenges That Still Remain

Even with positive signs, challenges continue to hang over the sector.

• High gas fees on major networks like Ethereum still discourage casual players, though some projects are solving this with sidechains and layer-2 networks.
• Regulatory uncertainty remains a significant obstacle. Governments are still debating how to classify NFTs and gaming tokens, and stricter rules could slow adoption.
• Market volatility is another risk. In 2024, NFT sales dropped by 42%, leaving many projects struggling to adapt.

Learning from that downturn, projects like Axie Infinity have shifted their focus toward sustainable play-to-earn (P2E) models. Instead of relying on endless token rewards, these newer systems emphasize balanced economies where in-game assets have real utility and long-term value.

Outlook for Crypto Gaming Tokens

Experts believe that if the current pace continues, gaming tokens could rally by 20–30% in the near term. Their long-term success, however, depends on two factors:

1. Mainstream adoption — Partnerships with recognizable brands and the release of high-quality games will be crucial to bringing in non-crypto gamers.
2. Infrastructure and regulation — Cheaper transaction networks and clear legal frameworks will be needed to ensure stability and avoid another sudden crash.

If these challenges are addressed, crypto gaming could become one of the biggest growth areas in blockchain, combining entertainment with digital ownership in a way that appeals to millions of players.

The NFT market’s 2025 rebound has reignited hope for the broader blockchain gaming sector. With trading volumes rising, gaming projects innovating, and major brands stepping into the space, tokens like SAND, AXS, and GALA may be positioned for a strong comeback. Yet, history shows that unchecked hype can quickly fade. The future of gaming NFTs will depend on creating sustainable ecosystems where players find genuine value and enjoyment not just speculative gains.