The NFT market is not dead: wealthy collectors are still driving its future according to Animoca Brands

Contrary to what the most alarmist headlines suggest, the NFT market is far from dead. Sales remain active in the elite collector segment, which continues to lead the digital asset ecosystem with a long-term perspective, quite different from the speculative mindset of early investors.

Resized but Stable NFT Market Among Digital Art Collectors

Sales of non-fungible tokens have experienced a significant contraction compared to the extraordinary peak of $1 billion monthly recorded in 2021-2022. However, the market still hovers around $300 million in the last 30 days, revealing that the sector has found its balance within a more conscious and structured segment.

Yat Siu, co-founder of Animoca Brands — a company specializing in Web3 development and venture capital focused on tokenizing real-world assets — emphasized during the CfC crypto conference in St. Moritz that the market is not collapsing but maturing. “Stalled, but definitely not dead,” Siu stated, highlighting how public perception does not reflect the underlying reality.

The phenomenon mirrors what happens in traditional art circles: wealthy collectors will continue investing in valuable works, while casual traders naturally drift away from the market. Just as those who collect Picasso or Ferrari recognize membership in an exclusive club of enthusiasts, the same occurs in the NFT universe.

Collectors as Market Drivers: a Community of Sophisticated Investors

“Affluent collectors are leading a lively NFT market,” Siu said during the interview. “Some investors will have a connection to a certain type of digital art, just as an heir to a family office might be a collector of Picasso works.”

Siu shared a personal perspective: he himself is a big NFT collector and recognizes the affinity that unites collectors in this new art form. “When they collect Picasso, enthusiasts develop an affinity for all other people who share the same interest; you become part of that club,” he explained. “The same applies to Ferrari, Lamborghini, or Rolex watches. NFTs simply represent the digital version of this collecting phenomenon.”

Despite his personal NFT portfolio having decreased by about 80%, Siu reiterates that these purchases were never intended as quick trading positions. “These are long-term assets that truly matter,” he emphasized, defining the intrinsic value of the collection beyond price fluctuations.

Examples of sophisticated investors continuing to operate in the sector include billionaire Adam Weitsman, who has publicly acquired NFTs such as the Otherdeed lands — assets representing land titles in Otherside, the blockchain-based 3D virtual world created by Yuga Labs — as well as the famous Bored Apes.

The History of NFTs: From Origins to Market Cycles

NFTs first emerged on the Ethereum blockchain at the end of 2017 with the Cryptokitties collection, introducing the concept of unique tokens in their kind. Like many trends in the crypto sector, NFTs have manifested in cyclical waves: the initial phase of popularity, decline, then a return with greater development and capital, reaching a peak in 2021-2022 when monthly sales exceeded $1 billion.

Today, the market appears leaner and more aware. Monthly sales are around $300 million, mainly driven by digital art enthusiasts with high purchasing power. Siu emphasized the historical perspective: “Remember that five years ago, this was a market with virtually no valuation,” he noted. “So everything is relative and depends on the time perspective adopted. And of course, the beauty of all this is that all data is available and verifiable on the blockchain.”

The Role of Blockchain Transparency in the NFT Market

A key element that distinguishes the NFT market is the complete traceability of transactions on the blockchain. This feature provides a fundamental advantage over traditional art markets, where provenance verification requires complex documentation. Blockchain offers immediate transparency, allowing collectors to verify the authenticity and history of each asset in seconds.

This characteristic may explain why the NFT market, despite downsizing, continues to attract high-profile collectors. Confidence in the system is inherent to the underlying technology, not dependent on intermediaries.

From Collector Communities to Scandals in France: How the Landscape Is Changing

Regarding the cancellation of NFT Paris — the main event in France dedicated to the sector, canceled just weeks before the scheduled opening date — Siu provided a contrasting analysis. Contrary to what some might interpret, the cancellation does not represent a condemnation of NFTs nor a criticism of the event organization, which was well-structured.

“I think it rather reflects criticism of France, which at one point was very favorable to cryptocurrencies,” Siu said. “However, France has completely distanced itself from cryptocurrencies in recent years. Regarding NFTs specifically, projects like Sorare — the NFT fantasy football game — have been under intense scrutiny by gambling regulators. We observe the same anti-crypto stance in Europe more generally.”

An additional factor influencing the event’s cancellation is security concerns. In the last 12 months, France has experienced a wave of attempted seizures and kidnappings targeting executives and investors active in the crypto sector. “NFT Paris was not solely a victim of the lack of sponsors,” Siu explained. “Many people, including myself, actually tried to avoid Paris partly due to personal security concerns.”

Long-Term Perspective: NFTs and the Future of Collecting

Siu concludes with an optimistic but realistic outlook. The NFT market is not dying; rather, it is evolving into a more sustainable form led by conscious collectors who recognize the intrinsic value of digital assets, regardless of price fluctuations.

The global collector community will continue to drive innovation and growth in the sector, supported by the immutable transparency of blockchain. As speculative enthusiasm fades, a solid base of sophisticated investors emerges, viewing NFTs as a legitimate part of their alternative asset portfolios, alongside art collections, classic cars, and luxury watches.