The NFT sector may be in a period of stagnation, but it is far from extinct. This is the perspective shared by Yat Siu, co-founder of Animoca Brands, in a recent interview with CoinDesk. According to Siu, the market is currently being sustained by wealthy collectors, creating a resilient ecosystem similar to those of fine art, luxury watches, or vintage cars.
Siu candidly admitted that his personal NFT portfolio has “dropped by about 80%,” yet he maintains that these assets are significant long-term holdings rather than mere tools for speculation. He noted that monthly trading volumes have stabilized at around $300 million, driven largely by high-net-worth individuals like Adam Weitzman, who continues to acquire high-end assets such as Bored Apes and Otherdeed virtual land.
The “Death” of NFT Paris and the Regulatory Shift
While many saw the cancellation of the flagship NFT Paris event as a sign of the sector’s demise, Siu attributed the move to security concerns and a tightening regulatory environment in France rather than market failure. Over the past year, France—once seen as a crypto-friendly hub—has hardened its stance on digital assets following a string of industry-related kidnappings and security breaches.
By the Numbers: A Massive Correction
The height of the NFT craze in 2021–2022 saw the sector’s market capitalization exceed $17 billion. Today, that figure has dwindled to roughly $3 billion. The decline in sales volume is even more staggering: from a peak of $23 billion, January 2026 recorded just $123 million—a drop of over 18,000%.
The “blue-chip” collections have not been spared:
- CryptoPunks: Fell from a peak of 113.9 ETH to 28.3 ETH.
- Bored Ape Yacht Club (BAYC): Plunged over 95%, from 128 ETH to 5.9 ETH.
- Pudgy Penguins: Dropped 80%, from 25.2 ETH to 4.9 ETH.
A Market in Transition
This prolonged correction has forced major players to exit or pivot. Exchanges like Bybit and Kraken, along with GameStop, have shuttered their NFT marketplaces. The auction house Christie’s has integrated digital art into its broader 20th and 21st-century art categories rather than treating it as a standalone tech sector.
Marketplaces are also reinventing themselves:
- OpenSea has transitioned into a multichain aggregator for various cryptocurrencies.
- Magic Eden CEO Jack Lu recently announced a shift toward “finance merged with entertainment.”
The only outlier in this cooling market is the Telegram Gifts segment. Since April 2025, its market capitalization has surged from 6.3 million TON to 92.1 million TON, representing the most successful niche in the current NFT landscape.
