Collectors are pouring millions into Pokémon trading cards, which have evolved into a market valued between $10 billion and $15 billion. Blockchain startups are now attempting to digitize these physical cards to enhance trading efficiency, although achieving sufficient liquidity to rival established platforms remains a challenge.
Collectors Drive Demand Amidst Market Evolution
As collectors flock to retailers like Costco, where lines form at the crack of dawn for the latest trading card releases, the interest in Pokémon cards is palpable. Notably, influencer Logan Paul recently sold a rare Pikachu Illustrator card for an astonishing $16.5 million, netting him over $8 million in profit. The buyer was AJ Scaramucci, son of financier Anthony Scaramucci and founder of Solari Capital.
Major retailers are reporting significant growth in trading card sales, with Target noting a nearly 70% increase last year, largely thanks to Pokémon, and planning further expansion in this category. Walmart also saw a staggering 200% increase in trading card sales online, leading both retailers to impose purchase limits to prevent scalping. eBay, the dominant marketplace for trading cards, reported $2.62 billion in sales in 2025.
The performance of Pokémon cards has outstripped both the S&P 500 and Bitcoin, with prices rising 28% this year compared to a 13% increase in the S&P 500 and a 29% drop in Bitcoin.
The trading card market's rapid growth is transforming it into an alternative asset class, but accurately gauging its size is complex due to its decentralized nature. Estimates range from $10 billion to $15 billion, with Kovoy VC suggesting a value of $13 billion for 2024 and Mordor Intelligence predicting $15 billion by 2026.
Despite the market's boom, trading infrastructure remains outdated. Collectors face long wait times for card grading, high marketplace fees, and slow shipping processes, making the experience cumbersome, especially for a generation accustomed to instant transactions.
Blockchain as a Solution
Startups are exploring blockchain technology to modernize trading card transactions by allowing for digital ownership transfers while securely storing physical cards in vaults. One such startup, ATH Labs, has launched a platform called Deadstock that tokenizes high-grade Pokémon cards on the Arbitrum blockchain. Founded by Dominic Jang, a Pokémon card enthusiast and finance expert, Deadstock aims to streamline the trading process.
ATH believes that the future of collectibles lies in enhancing the trading experience rather than simply increasing card production. They argue that the absence of a central registry for trading cards creates an opportunity for blockchain solutions to enhance ownership verification and transaction efficiency.
Deadstock plans to pair each physical card, particularly those graded PSA-10, with a digital token. This allows for ownership transfers without moving the physical card until the owner decides to redeem it.
Similar to how assets like gold and stocks are tokenized, this approach could revolutionize the trading card market. Platforms like Courtyard already demonstrate significant activity, with around $139 million in volume processed over 30 days and an annualized fee of about $48 million.
Other blockchain platforms are also emerging, such as Collector-Crypto and Phygitals, indicating a growing interest in trading vaulted physical collectibles via cryptocurrency. However, these platforms still lag behind traditional marketplaces in terms of volume and liquidity.
ATH Labs is positioning itself uniquely by focusing on access to inventory, partnering with Japan Trading Card Center (JTCC) to secure a reliable supply of high-quality cards. This partnership is expected to provide Deadstock with a steady stream of inventory, which is crucial for the tokenization model to work effectively.
Challenges Ahead
Despite the promising developments, liquidity remains a significant hurdle. eBay's dominance in price discovery and trading volume highlights the challenges new platforms face in attracting users. In 2025, eBay facilitated over $2.62 billion in card sales, underscoring the network effect that established marketplaces enjoy.
Without a large user base, tokenized trading platforms may struggle to provide the liquidity that collectors need. The trading card market is sensitive to condition and rarity, meaning even minor differences can lead to substantial price variances. Therefore, collectors may prefer traditional platforms for their established buyer-seller ecosystems.
ATH argues that traditional marketplaces have their own inefficiencies, such as shipping delays and high fees, which their platform aims to address by providing immediate access to authenticated cards. Jang emphasizes the importance of making the trading process seamless, allowing collectors to engage without needing to understand the underlying blockchain mechanics.
Ultimately, the question remains whether collectors will embrace tokenized trading over established methods like eBay or conventions. The future of Pokémon card trading may depend on how effectively these new platforms can address liquidity and user experience challenges, creating a more attractive alternative for collectors.