NFTs have revolutionized the digital landscape, offering more than just ownership of unique digital assets. For investors, NFT has opened up new avenues to earn passive income beyond mere buying and selling!
From staking NFTs to earning royalties to generating passive income with NFT fractions, the opportunities to earn consistent returns are growing. Whether you’re an experienced NFT enthusiast or a curious newcomer, understanding these income streams is crucial to maximizing your earnings!
Let’s find out all the ways to generate passive income through NFTs in 2025!
Table of Contents
How can I earn passive income from NFT?
1. NFT staking
Staking your NFTs, just like staking cryptocurrency, is a popular way to earn passive income. By locking your NFTs on platforms like NFTX, Doge Capital, and Binance, you can earn daily rewards in tokens.
Some of the best NFT staking platforms even offer double-sided and single-sided staking options, with rewards ranging from native tokens like $SAND or $AXS.
How-to:
- Choose a staking platform: Research and select a reputable platform that supports NFT staking (e.g., NFTX, Doge Capital, or Binance).
- Connect your wallet: Use a compatible crypto wallet (like MetaMask or Trust Wallet) and connect it to the staking platform.
- Select your NFT: Browse your wallet assets and choose the NFT you want to stake.
- Review staking terms: Carefully read the staking terms, including the lock-up period and reward rate.
- Stake your NFT: Confirm the transaction to lock your NFT in the staking contract.
- Earn rewards: Monitor your staking dashboard to track your daily token earnings.
- Un-stake when needed: Once the lock-up period ends, you can un-stake and retrieve your NFT.
💡Tip: Always verify the APY (Annual Percentage Yield) and platform reputation before staking your NFTs to avoid scams and low returns.
| Pros | Cons |
| Steady passive income, no need for active trading | Risk of project abandonment or market fluctuations affecting reward value |
2. Play-to-Earn games
NFTs in games like Axie Infinity and Splinterlands allow users to earn tokens by staking or playing with their assets. Games on the Solana and Ethereum blockchains are particularly lucrative for NFT passive income projects. Axie Infinity offers up to 35% annual staking returns on its governance token, $AXS.
How-to:
- Choose a game: Research and pick a reputable play-to-earn game that supports NFT staking or gameplay earnings (e.g., Axie Infinity or Splinterlands).
- Set up your wallet: Use a compatible wallet (like MetaMask) to connect with the game platform.
- Purchase or earn NFTs: Acquire game-specific NFTs either through the marketplace or by earning them in-game.
- Stake your NFTs (if applicable): Lock your NFTs within the game’s staking mechanism to earn passive rewards.
- Play and earn: Participate in battles, tournaments, or quests to earn in-game tokens.
- Withdraw your earnings: Once you accumulate enough tokens, withdraw them to your wallet or convert them to other cryptocurrencies.
- Monitor rewards: Keep an eye on your earnings and staking performance to maximize your income.
💡Tip: Always consider the gas fees and potential market volatility of game tokens before investing heavily.
| Pros | Cons |
| Earn rewards while enjoying games | Requires time investment and initial capital in in-game NFTs |
3. Royalty earning NFTs
NFTs embedded with royalty mechanisms allow holders to earn a share of sales each time the asset is sold. Projects like BAND NFTs offer free NFT passive income through royalties, especially in music-based NFTs.
However, income can be volatile depending on the NFT’s demand and resale frequency!
How-to:
- Find royalty-enabled NFTs: Look for NFTs with built-in royalty mechanisms on platforms like OpenSea, Rarible, or BAND NFTs.
- Check royalty terms: Review the royalty percentage and distribution model specified by the creator. Typical royalties range from 5% to 10% per resale.
- Purchase the NFT: Acquire the royalty NFT through a marketplace, ensuring that it has verified royalty settings.
- Hold and earn: Each time the NFT is resold on the platform, you will automatically receive a portion of the sale amount as a royalty.
- Track your earnings: Use your wallet or the platform dashboard to monitor incoming royalty payments.
- Reinvest or cash out: You can either hold the royalties as crypto or convert them to fiat through exchanges.
💡Tip: Choose high-demand NFT collections with active trading volumes to maximize royalty income.
| Pros | Cons |
| Completely passive, potentially long-term earnings | Dependent on secondary market sales, low liquidity |
4. Yield farming and liquidity provision
By providing liquidity on platforms like NFTX, users can stake NFTs for passive income by earning a percentage of trading fees. Users can also convert NFTs into ERC-20 tokens, enabling them to trade or stake within liquidity pools.
How-to:
- Select a De-Fi platform: Choose a reliable platform like Uniswap, SushiSwap, or PancakeSwap that supports NFT-backed tokens.
- Connect your wallet: Use a DeFi-compatible wallet (like MetaMask) to access the platform.
- Acquire NFT-backed tokens: Convert your NFTs to ERC-20 or BEP-20 tokens if needed, or use existing NFT liquidity pools.
- Provide liquidity: Deposit your NFT-backed tokens into a liquidity pool to earn a share of transaction fees and farming rewards.
- Stake your LP tokens: Some platforms issue Liquidity Provider (LP) tokens when you deposit assets. Stake these LP tokens to earn additional yields.
- Monitor your earnings: Regularly check your rewards and APY (Annual Percentage Yield) to ensure profitability.
- Withdraw when needed: You can un-stake and withdraw your liquidity at any time, but be mindful of impermanent loss and gas fees.
💡Tip: Diversify your liquidity provision across multiple pools to reduce risks and maximize returns.
| Pros | Cons |
| Higher APY from liquidity farming | Risks of market volatility and smart contract exploits |
5. Earn passive income with NFT renting
Owners of valuable NFTs, like virtual land in The Sandbox or Decentraland, can rent them out to other users. These projects, especially those based on the Solana blockchain, provide a consistent NFT passive income stream by letting others use your assets for metaverse events, advertising, or gameplay.
How-to:
- Choose the right platform: Select a reputable NFT rental platform, such as reNFT, LandVault, or native renting systems on The Sandbox and Decentraland.
- Connect your wallet: Link your crypto wallet (like MetaMask) to the rental platform.
- List your NFT for rent: Upload the NFT you want to rent out and set rental terms, including duration, rental fee, and collateral (if applicable).
- Specify usage rights: Clearly define how the renter can use your NFT (e.g., for events, advertising, or gameplay).
- Approve the contract: Confirm the smart contract terms to make the NFT available for rent.
- Earn rental income: Once rented, you will receive periodic payments based on the agreed terms.
- Monitor and manage rentals: Keep track of active rentals and manage your assets from the platform dashboard.
💡Tip: Set competitive rental rates by analyzing similar listings and considering market demand to attract more renters.
| Pros | Cons |
| Regular rental income without selling NFTs | Limited to certain high-demand projects, requires initial investment |
6. Generating passive income with NFT fractions
NFT fractionalization allows you to split ownership of a single NFT into multiple pieces or “fractions.” These fractions can be sold or staked, enabling a broader group of investors to participate and earn passive income from high-value assets.
This method is particularly beneficial for rare and expensive NFTs, such as those in the Bored Ape Yacht Club or CryptoPunks collections. By owning a fraction, investors can still earn from trading or staking fees while holding partial ownership.
How-to:
- Choose a fractionalization platform: Select a reputable platform like Fractional.art or NFTX to split your NFT.
- Connect your wallet: Use a compatible wallet (like MetaMask) to connect to the fractionalization platform.
- Fractionalize your NFT: Choose the NFT you want to divide and specify the number of fractions to be created.
- Set the sale price: Determine the total value and set a price per fraction.
- List fractions for sale: Publish the fractions on the marketplace and make them available for purchase.
- Stake your fractions: Some platforms allow you to stake fractional NFTs to earn additional rewards.
- Earn passive income: Income can come from royalties, staking rewards, or trading fees as fractions change hands.
💡Tip: Carefully evaluate the liquidity and demand for fractionalized NFTs to ensure consistent income potential.
| Pros | Cons |
| Access to high-value NFTs without buying the entire asset | Profits are divided among multiple owners; liquidity could be lower |
7. NFT De-Fi collateralization
You can use NFTs as collateral for decentralized finance (De-Fi) loans. Platforms like Arcade or Drops allow NFT holders to lock their assets and borrow stablecoins or tokens in return.
While the NFT remains locked, you can invest the borrowed amount in other projects, generating additional passive income. This strategy is popular with Solana NFT passive income enthusiasts because it combines De-Fi lending with digital collectibles.
How-to:
- Select a De-Fi platform: Choose a trusted platform like Arcade or Drops that supports NFT collateralization.
- Connect your wallet: Use a compatible wallet (like MetaMask) to connect to the platform.
- Deposit your NFT: Choose the NFT you want to use as collateral and initiate the deposit process.
- Specify loan terms: Set the loan amount, interest rate, and repayment period according to platform guidelines.
- Receive stablecoins or tokens: Once the NFT is locked as collateral, receive the loan amount in stablecoins or tokens.
- Invest the borrowed funds: Use the loaned crypto for yield farming, staking, or other investment opportunities to generate passive income.
- Repay the loan: Pay back the principal and interest to reclaim your NFT, or risk losing ownership if you default.
💡Tip: Always evaluate the loan-to-value (LTV) ratio to minimize the risk of liquidation during market volatility.
| Pros | Cons |
| Earn passive income while holding your NFT | Risk of liquidation if the loan isn’t repaid, requires knowledge of DeFi markets |
Each method provides distinct benefits and risks, making it important to diversify your strategy across the best NFT passive income opportunities.
How much does the average person make on an NFT?
In 2025, the average earnings from NFTs have become more variable due to market volatility and evolving trends. While some high-profile NFTs still generate substantial returns, most NFT sales fall short of those extremes.
According to market data, less than 50% of all NFT sales exceed $200, and the average NFT transaction price has dropped significantly—by about 92% between 2022 and 2023. This decline is linked to a broader slowdown in NFT market activity!
However, players in niche segments like play-to-earn games and staking continue to generate consistent passive income. Users staking NFTs on platforms like Solana or Ethereum report making anywhere from $10 to $100 per month, depending on the collection’s popularity and market conditions.
Is staking NFTs risky?
Yes, staking NFTs can be risky. The main risks involve the volatility of the NFT and cryptocurrency markets, potential smart contract bugs, and the loss of liquidity while the NFT is locked up, limiting its immediate sale or trade.
Here are the pros and cons of staking NFT:
| Pros of staking | Cons of staking |
|---|---|
| Earn passive income through rewards | Risk of market volatility impacting value |
| No need for active trading | Smart contract vulnerabilities |
| Benefits from long-term holding | Locked liquidity (can’t sell instantly) |
| Platforms offer high annual returns | Dependence on the platform’s stability |
| Can diversify income streams | NFTs can lose popularity or value |
Earning passive income from NFTs can be rewarding but requires careful planning. Whether staking, renting, or participating in play-to-earn games, each method offers distinct advantages and risks.
It’s essential to research the best NFT projects, ensuring your investments are on solid ground. In 2025, the best NFTs for passive income include Bored Ape Yacht Club, CryptoPunks, Axie Infinity, and Splinterlands!
Consider using trusted platforms like Solana or Ethereum to stake NFTs, but always be mindful of market volatility and potential liquidity loss. Diversifying your income streams by combining several methods can minimize risk.
For anyone diving into NFT passive income projects, staying informed on trends and carefully choosing where to invest will significantly impact long-term success!
Also, discover the pros and cons of NFTs to gain a deeper understanding of the ecosystem.
Which NFTs do you think pay the highest returns in terms of passive income? Share with our readers in the comments section.
