The NFT sector may be stagnant, but it is certainly not dead. This was the sentiment expressed by Yat Siu, co-founder of Animoca Brands, in an interview with CoinDesk.

According to him, wealthy investors continue to shape a vibrant and resilient market for digital art. He likened the community to clubs of art, rare car, or watch enthusiasts.

“I am a big collector myself and share similar views with my colleagues in this field. […] 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,” Siu said.

He acknowledged that his personal NFT portfolio has “dropped about 80%,” but he views these assets as long-term and meaningful rather than speculative.

Siu stated that the monthly trading volume for non-fungible tokens currently hovers around $300 million. Major investors like Adam Weitsman, who acquires expensive NFTs such as Bored Apes and virtual land parcels from Otherdeed, now play a key role in the sector.

“Remember, five years ago this was a market with zero capitalization. So everything is relative and depends on your perspective. And, of course, the beauty is that all data is visible on the blockchain,” emphasized the co-founder of Animoca Brands.

Many considered the cancellation of the flagship NFT Paris event as one of the final nails in the coffin for the sector. However, Siu attributed this not to market issues but to changes in the regulatory climate and security concerns in France.

Previously a crypto-friendly country, France has tightened its policies regarding digital assets. Over the past year, a series of kidnappings related to the industry have also occurred within its jurisdiction.

“NFT Paris fell victim not only due to the inability to find sponsors. Many people, including myself, were trying to avoid Paris due to security issues,” the expert noted.

What’s Happening with NFTs?

The peak excitement around non-fungible tokens occurred in 2021-2022. At its height, the sector's capitalization exceeded $17 billion, but as of now, it has dropped to $3 billion.

Source: CoinGecko.

During that period, NFT sales volumes surpassed $23 billion. As of January 2026, this figure stands at $123 million, marking a decline of over 18,000%.

Source: CryptoSlam.

The minimum price for the most popular collections has plummeted by tens of percent. At its peak, CryptoPunks were valued at 113.9 ETH, but as of now, it has fallen to 28.3 ETH.

Source: NFT Price Floor.

The price of Bored Ape Yacht Club has crashed by over 95% — from 128 ETH to 5.9 ETH. Similarly, the minimum price for the third-largest collection, Pudgy Penguins, dropped by 80% — from 25.2 ETH to 4.9 ETH.

Amid a significant and prolonged correction, many crypto exchanges, including Bybit and Kraken, as well as larger companies like GameStop, shut down their NFT trading platforms.

The British auction giant Christie’s also joined this trend. The organization continues to sell digital art but within the broader category of 20th and 21st-century art.

NFT marketplaces are pivoting their business models. For instance, OpenSea now positions itself as a multi-chain aggregator for trading a wide range of cryptocurrencies.

Recently, Magic Eden CEO Jack Lu announced a shift in the company’s direction, stating that the platform will focus on the segment where “finance merges with entertainment.”

Currently, the only successful NFT segment is Telegram gifts. From April 2025 to January 2026, the capitalization of this segment grew from 6.3 million TON to 92.1 million TON.

Source: GiftStat.

It’s worth noting that in July, Solana Labs CEO Anatoly Yakovenko described meme coins and NFTs as “digital trash.”