💥 A possible criticism: In this market cycle, the vast majority of NFTs will face the risk of liquidity drying up, with only a few exceptions…

Let’s get straight to the point: apart from top blue-chip and truly utility-driven “functional” NFTs, nearly 90% of NFT projects (including many that look decent) could encounter survival crises during a bull market. 💔

Why is that?

**The reality of capital flow** — During a bull market, the incremental funds will first flow into highly volatile, leverage-effective assets (spot, futures, etc.). Due to insufficient liquidity, NFTs simply cannot attract these large, efficiency-seeking capital.

**The narrative is outdated** — The “digital avatar” story has long become tiresome. The attention of the new generation of capital has shifted to sectors capable of generating real cash flow or technological breakthroughs, such as AI applications, DePIN infrastructure, RWA tokenization, and so on. These are the areas where the story remains fresh.

**Imbalance between costs and returns** — Once Ethereum’s Gas fees return to high levels, minting and trading NFTs will become prohibitively expensive. Are you willing to spend hundreds of dollars on Gas to buy or sell a picture that might not appreciate? For unprofitable ventures, capital will naturally turn away.

So, which ones will survive?

· **Top blue-chip**: Projects like CryptoPunks have long evolved into social currencies and identity tags, supported by strong consensus behind them.

· **Functional NFTs**: Irreplaceable equipment in games, permission tokens for DeFi protocols — the value of these NFTs is anchored in their actual utility, not just visual appeal.

The market is changing, and the logic of capital is evolving. The previous experience and routines are no longer applicable. 🧬