The NFT market is a highly active type reinventing itself: from speculative boom to elite collecting

An hyperactive type of market characterized NFTs in 2021 and 2022, when monthly sales exceeded one billion dollars. Today, the sector appears deeply transformed, with volumes halved compared to those frenetic years, but not at all dead. According to Yat Siu, co-founder of Animoca Brands, the real novelty is that the market is undergoing a radical metamorphosis: from an hyperactive type dominated by speculators to a more stable ecosystem led by wealthy collectors with long-term visions.

From an hyperactive scenario to a luxury niche: who is moving the market today

The shift from an hyperactive market to a more subdued configuration represents a structural change in the sector. Monthly NFT sales are currently around $300 million over the last thirty days, a figure that still keeps the market alive and operational. “The beauty of all this is that the data is available and visible on the blockchain,” Siu emphasized during a recent cryptocurrency conference in St. Moritz.

The true drivers of the contemporary market are wealthy collectors, a segment of investors who dedicate significant resources to digital assets for reasons other than quick speculation. Siu himself described how prominent figures like Adam Weitsman are publicly purchasing high-value NFTs, from Otherdeed lands (which represent virtual properties in the metaverse Otherside created by Yuga Labs) to iconic Bored Apes. These are not purchases made with the intention of reselling quickly, but long-term assets reflecting conscious and stable choices.

The history of NFTs: from the phenomenon to an hyperactive type and back

To understand the current situation, it is helpful to trace the path of NFTs on the Ethereum blockchain. The first non-fungible tokens appeared in 2017 with Cryptokitties, collectible cats that introduced the concept of certified digital ownership. In subsequent years, the sector experienced cyclical fluctuations, with bursts of interest followed by periods of relative calm.

The real phenomenon arrived in 2021-2022, when the market entered a phase of an hyperactive type characterized by exponential growth, massive capital, and a widespread narrative of quick wealth. Monthly sales peaked at one billion dollars, attracting speculators from everywhere. But this frenetic dynamic had fragile foundations: many purchases were motivated by the hope of immediate profits rather than a genuine affinity for art and digital collecting.

Five years of evolution have clarified the situation. “Remember that five years ago, this was a zero-value market,” Siu noted. “So everything is relative and depends on the perspective you adopt.” Today, the market has not disappeared but has recalibrated, with an hyperactive type now belonging to the past.

The parallel with traditional collecting: NFTs as digital art

A crucial element in Siu’s vision is the parallel between modern NFT collectors and traditional art collectors. “A Picasso collector will have an affinity towards all other people who collect Picasso; you are part of that club,” Siu explained. “The same applies to Ferrari, Lamborghini, or Rolex watches. This is simply a digital version.”

This perspective transforms NFTs from speculative tools into objects of desire for an informed elite. Wealthy collectors are driven by motivations similar to those of physical art collectors: aesthetic appreciation, community belonging, the pursuit of scarcity and meaning. “I am also a big collector,” Siu confirmed, highlighting that his personal NFT portfolio is down about 80%, but adding: “It was never about quick resale. These are long-term assets that matter.”

The enemies of the sector: France closes doors and security becomes critical

As the NFT market stabilizes around a base of premium collectors, the sector faces significant obstacles. The French flagship event, NFT Paris, was canceled just one month before the scheduled opening date, a tangible sign of the difficulties the sector encounters in some jurisdictions.

Siu attributes the cancellation not to a negative judgment of NFTs themselves but to external factors. “I think it’s criticism of France, which at one point was very favorable to cryptocurrencies,” he said. “France has completely distanced itself from cryptocurrencies.” Projects like Sorare, the blockchain-based fantasy football game, have come under the scrutiny of French gaming regulators, reflecting a broader anti-crypto stance in Western Europe.

But it’s not just about hostile regulation. Personal security is a real deterrent. In the past year, France has experienced a worrying wave of kidnapping and seizure attempts targeting executives and investors in the crypto sector. “NFT Paris was not abandoned just because they couldn’t find sponsors,” Siu explained. “Many people, including myself, have tried in some way to avoid Paris precisely because of security issues.”

These external factors, rather than an intrinsic death of the sector, explain why an hyperactive market type that characterized 2021-22 has transformed into a more contained and selective reality, where the true drivers remain conscious collectors rather than opportunistic speculators.