The once-hyperactive non-fungible token (NFT) market has cooled significantly since its 2021-2022 peak, with token valuations now a fraction of their former highs. The slowdown was underscored recently by the cancellation of NFT Paris, France’s flagship NFT event, just one month before it was scheduled to begin. Still, industry leaders argue that while the NFT market is in the doldrums, it is far from dead.
Yat Siu, co-founder of Animoca Brands, says NFTs remain highly relevant among wealthy collectors, particularly those with a long-term interest in digital art and blockchain-based assets. Speaking at the CfC St. Moritz crypto conference, Siu explained that high-net-worth individuals continue to drive a vibrant NFT marketplace, much like traditional art collectors who gravitate toward works by Picasso or other iconic artists.
According to Siu, NFTs function as a digital extension of established collector cultures, similar to communities built around Ferraris, Lamborghinis, or Rolex watches. Despite admitting that his personal NFT portfolio is down roughly 80%, Siu emphasized that these assets were never meant for short-term trading. Instead, they represent long-term investments with cultural and personal significance.
NFTs, which are unique blockchain-based tokens, first gained attention in 2017 with projects like CryptoKitties. The market later surged with increased development and institutional interest, reaching monthly sales of over $1 billion at its peak. Today, monthly NFT sales hover around $300 million, still a substantial figure compared to a near-zero market just five years ago.
Siu pointed to wealthy buyers such as billionaire Adam Weitsman, who has publicly purchased high-profile NFTs including Bored Apes and Otherdeed land tokens linked to Yuga Labs’ Otherside metaverse. These purchases highlight ongoing confidence in premium digital collectibles.
Regarding the cancellation of NFT Paris, Siu suggested the issue reflects broader challenges for crypto in France and Europe, including regulatory scrutiny and security concerns. Recent incidents involving crypto executives have reportedly made Paris less attractive for major blockchain events. Despite these hurdles, the NFT market continues to evolve, supported by transparent on-chain data and a committed base of digital art collectors.
