NFT Market Reveals Resilience Despite Contraction to a Fraction of 2021/22 Peaks

The non-fungible token market has experienced a dramatic correction from its stratospheric heights, with monthly sales now settling at approximately $300 million—a significant fraction of the $1 billion monthly transaction volumes witnessed during the 2021/22 bull run. Yet despite these sobering numbers, the ecosystem continues to attract serious wealth, with affluent collectors and digital art enthusiasts sustaining the sector through a period that many had prematurely declared dead. Yat Siu, co-founder of Animoca Brands, the Web3 development and venture capital firm increasingly focused on real-world asset tokenization, argues this market contraction represents a natural maturation rather than a terminal decline.

“Have NFTs remained popular among wealthy collectors? Yes, of course. I’m a big collector myself, and I share similar insights with my peers in this space. It’s a community,” Siu said in an interview at the CfC St. Moritz crypto conference. The market downturn has effectively filtered out speculative participants, leaving behind a core demographic with genuine affinity for digital collectibles. The current market environment draws parallels to traditional luxury collecting, where passion and long-term appreciation motivate purchases rather than quick trading profits.

Market Contraction: Monthly NFT Sales Shrink to a Fraction of Former Glory

The numbers paint a stark picture of market correction. NFT sales have plummeted from $1 billion monthly at the sector’s 2021/22 peak to close to $300 million per month in recent periods—representing a reduction to roughly one-third of maximum volumes. This represents the market’s journey through multiple boom-and-bust cycles since Cryptokitties first appeared on the Ethereum blockchain in late 2017, proving that cyclical volatility defines rather than destroys the NFT narrative.

Yet the narrative of total collapse overlooks a crucial observation: the current market size remains substantial compared to the sector’s origins. “Remember that five years ago this was a zero dollar market,” Siu noted. Viewed through this historical lens, even a fraction of 2021/22 volumes represents authentic growth compared to the sector’s genesis. The evolution from zero-dollar market to hundred-million-dollar monthly trading activity underscores the durability of NFT infrastructure and collector communities.

Why Wealthy Collectors Keep Digital Art Alive

Affluent participants are the primary engine sustaining NFT market activity, driven by the same motivations that fuel traditional luxury goods markets. Siu draws direct parallels between digital collectibles and physical assets: “A Picasso collector, for instance, would have an affinity towards all the other people who collect Picassos; you’re kind of part of that club. It’s also true for Ferraris, Lamborghinis or Rolex watches. This is just a digital version.”

This comparison captures the psychological foundation supporting NFT collecting among high-net-worth individuals. Billionaire Adam Weitsman has publicly acquired NFT properties including Otherdeed lands—blockchain-based land deeds in Otherside, the 3D virtual world created by Yuga Labs—alongside Bored Apes NFT collections. These purchases reflect genuine asset accumulation strategies rather than speculative trading.

Siu acknowledges personal portfolio losses in his own NFT holdings: “These are long assets that matter,” he explained, noting that his collection is “down like 80% or something,” but reiterating his commitment to these positions. This distinction between long-term holding and short-term flipping represents the fundamental shift in NFT market participants following the correction.

France’s Crypto Regulatory Reversal Disrupts Industry Events

The cancellation of NFT Paris, the sector’s flagship annual conference scheduled for early 2026, signals deeper regulatory headwinds facing European crypto initiatives. The event’s withdrawal reflects France’s dramatic policy reversal on cryptocurrency and blockchain technology. “I think it’s an indictment of France, which at one point was very pro-crypto,” Siu said. “France has completely veered away from crypto.”

The regulatory shift extends to specific NFT applications. Fantasy soccer game Sorare faced scrutiny from French gambling regulators, exemplifying broader skepticism toward blockchain-based gaming and digital assets. This trend reflects wider anti-crypto sentiment gaining momentum across the European Union, with France serving as a flashpoint for stricter enforcement.

Security concerns compound the regulatory challenges. France has experienced a notable uptick in kidnapping and abduction attempts targeting crypto executives and investors, creating genuine personal safety concerns for industry participants. “NFT Paris wasn’t just a victim because they couldn’t get sponsors. A lot of people, including myself, you’ve been kind of trying to avoid Paris a little bit just because of security issues,” Siu explained. The confluence of regulatory hostility and physical security threats has made European crypto conferences increasingly challenging to execute.

The Blockchain’s Permanent Record: Long-Term NFT Fundamentals

Despite near-term headwinds, the immutable transaction record maintained by blockchain networks provides permanent transparency regarding NFT market activity and participant behavior. This transparency fundamentally distinguishes digital assets from opaque traditional markets, allowing analysts and investors to verify claims through on-chain data.

The NFT ecosystem has evolved through distinct waves of adoption, each building genuine infrastructure rather than leaving behind merely speculative wreckage. The combination of wealthy collector participation, stable monthly trading volumes in the hundreds of millions, and persistent technological development suggests the sector has transitioned from speculative mania to sustainable niche market. Whether NFTs emerge as a permanent asset class alongside traditional collectibles depends partly on regulatory clarity, security improvements, and the continued engagement of affluent participants who view these assets through a collector’s rather than trader’s mindset.