Animoca Brands' Yat Siu claims the NFT market is resilient despite downturns, highlighting ongoing investment and community engagement.
Despite perceptions of stagnation, Yat Siu, co-founder of Animoca Brands, insists the NFT market is not dead. In a recent interview, he highlighted that affluent investors are still actively shaping a dynamic landscape for digital collectibles.
Siu drew parallels between NFT collectors and enthusiasts of traditional art or luxury items, stating, “For instance, a Picasso collector feels a kinship with others who buy the artist's paintings; you are part of that club. The same goes for Ferrari, Lamborghini, or Rolex watches. It’s just a digital version.”
While he admitted that his own NFT portfolio has seen an 80% decline, he remains optimistic about the long-term value of these assets. Currently, the NFT trading volume stands at approximately $300 million per month, fueled by major players like Adam Weitsman, who has invested heavily in high-value NFTs such as Bored Apes and Otherdeed virtual land.
Siu pointed out the significant growth of the NFT market over the past five years, emphasizing that it is all relative: “Five years ago this was a market with zero capitalization. So everything is relative and depends on your perspective.”
The recent cancellation of the NFT Paris event has been viewed by some as a sign of the sector's decline. However, Siu attributed this to regulatory changes and security concerns in France, rather than market issues. He noted, “Many people, including myself, were trying to avoid Paris due to security issues.”
Current Trends in the NFT Market
The NFT market experienced its peak excitement between 2021 and 2022, where its capitalization soared past $17 billion but has since plummeted to around $3 billion. Sales volumes during the peak exceeded $23 billion, yet recent figures show a drastic reduction to just $123 million as of January 2026.
Price drops have been severe across popular collections. For example, CryptoPunks, once valued at 113.9 ETH, now sit at 28.3 ETH, while the Bored Ape Yacht Club has seen its value decrease by over 95%, from 128 ETH to 5.9 ETH. Similarly, Pudgy Penguins have dropped from 25.2 ETH to 4.9 ETH.
In response to the market correction, several crypto exchanges like Bybit and Kraken have closed their NFT trading platforms. Christie's auction house continues to engage with digital art but has shifted its focus to broader categories of 20th and 21st-century art.
Marketplaces are adapting; for instance, OpenSea has transitioned into a multi-chain aggregator for various cryptocurrencies. Meanwhile, Magic Eden's CEO announced a strategic pivot towards areas where finance intersects with entertainment.
Interestingly, the only thriving segment within the NFT space currently is Telegram gifts, which saw its capitalization surge from 6.3 million TON to 92.1 million TON between April 2025 and January 2026.
