How NFT brands like Pudgy Penguins survive despite market downturns – and why buying NFTs still makes sense

The success story of Pudgy Penguins demonstrates that innovative marketing still counts even in tough times. The project projected its animated penguin characters onto the Las Vegas Sphere during Christmas – one of the world’s most famous LED displays visible across the entire Las Vegas Strip. This spectacular campaign was not just a marketing stunt but a signal: NFT projects with a substantial business model can survive.

The NFT Market 2025: A Year of Cleanup

2025 was a testing year for the NFT sector. The numbers tell a clear story: transaction volume in the first quarter plummeted by 63% to $1.5 billion ( compared to $4.1 billion in Q1 2024 ). In March, the situation worsened dramatically – monthly sales dropped by 76% to just $373 million. By December, the total NFT market capitalization fell to about $2.5 billion, the lowest level of the entire year.

But while many projects disappeared, certain NFT categories showed resilience. Pudgy Penguins was among the few that weathered the wave.

From Crisis to Diversification: The Pudgy Penguins Model

The key to Pudgy Penguins’ success is not just NFTs. When Luca Netz acquired the project in 2022 for $2.5 million, he quickly realized: pure digital collectibles are not enough. He leveraged his background in the consumer goods industry to expand Pudgy Penguins into physical toy production.

The business model works: by the end of 2025, Pudgy Penguins generated an estimated $50 million in revenue – mainly through toy sales. “Margins are thin,” Netz admitted, “but it was worth scaling into this business.” The company also relies heavily on Instagram, where the Pudgy Penguins account now has about 2 million followers.

The New Trend: NFTs with Real Value

While traditional NFT projects struggled with falling sales, a new category gained momentum in 2025: NFTs backed by physical assets. The best example is Courtyard.io, a platform that connects authenticated trading cards – especially Pokémon cards – with on-chain tokens. These NFTs can be traded or redeemed.

In the last 30 days, Courtyard processed over 230,000 transactions and generated about $13.9 million in revenue. Courtyard CEO Nicolas le Jeune emphasizes an important point: “The blockchain is a tool, not the goal. The value lies in the underlying asset – the NFT simply offers a better way to experience it.”

Why It Still Makes Sense to Buy NFTs

The takeaway from these developments is clear: it’s not a question of whether you should buy NFTs, but which ones. Projects that rely on substantial business models, real assets, or physical products demonstrate resilience. Speculation-driven projects, on the other hand, quickly disappear from the market.

Pudgy Penguins with its toy sales and Courtyard with its authenticated trading cards represent the future of the sector: NFTs as practical tools, not just speculative objects.