The NFT market crash does not stop wealthy collectors

The crash that characterized the non-fungible token market from its peak in 2021-2022 has not marked the end of this digital ecosystem. According to Yat Siu, co-founder of Animoca Brands, the true story of NFTs continues to be written by a very specific group of participants: wealthy collectors who maintain a long-term vision of their digital assets.

From billions of dollars to consolidation: how the market has transformed

NFT sales have experienced a drastic contraction compared to the golden days. In 2021 and the early months of 2022, the market reached peaks of over $1 billion per month, a flow of capital that seemed unstoppable. Today, things are very different: the last thirty days have recorded movements close to $300 million, a significant reduction that nevertheless keeps the market far from total extinction.

This percentage decline does not simply represent a numerical correction. Instead, it reflects a qualitative transformation of the market, where the frantic speculation of the initial phase has given way to a more selective and conscious participation. “Remember that five years ago, this was a zero-value market,” Siu noted during the CfC conference in St. Moritz. “So everything is relative and depends on the perspective you adopt.”

When wealthy collectors define the market

The current non-fungible market base is mainly supported by individuals who consider these assets as permanent digital artworks. These are not traders seeking quick gains, but collectors seeking exposure to rare digital creations, just as an heir of a family office might collect paintings by Picasso.

Siu himself embodies this category. His personal NFT portfolio has suffered significant losses—about 80% from its peak value—yet this did not push him to liquidate his positions. “These are long-term assets that matter,” he explained. The approach reflects a mindset that considers the price collapse as a natural phase rather than a death sentence for the entire sector.

Among prominent collectors still active in the market is billionaire Adam Weitsman, who has publicly purchased high-profile NFTs such as Otherdeed lands (assets representing property in the virtual 3D world Otherside created by Yuga Labs) and the famous Bored Apes. These high-value purchases highlight how the premium segment remains active and convinced of the potential of non-fungible tokens.

The history of non-fungible tokens: from 2017 to today

The NFT timeline tells a story of cycles and rebirths. It debuted towards the end of 2017 with Cryptokitties on the Ethereum blockchain, an experience that captured the imagination of digital collectors and industry enthusiasts. Like many innovations in the crypto world, NFTs have followed a wave pattern: periods of frenzy alternated with hibernation phases.

The peak expansion occurred in 2021-2022, when the phenomenon reached media saturation and the peak of speculative capital. However, unlike other passing trends, this market has not disappeared entirely: it has simply consolidated around a community of true believers who see tokenized digital creations as legitimate collectibles.

The parallel with traditional art

One of the most effective parallels to understand the permanence of NFTs concerns traditional collecting. An enthusiast of Picasso, Ferrari, Lamborghini, or Rolex watches does not represent a casual community but a selective club bound by shared values and interests. NFT collectors operate under the same logic: they seek belonging to a community of aficionados who share aesthetic sensibilities and value visions.

“It’s a community,” Siu emphasized. “You are part of that club.” This psychological and social element explains why the price crash did not lead to widespread abandonment of the market but rather naturally filtered out those with genuine collecting motivations from those driven by mere financial speculation.

France, regulation, and the geopolitical context

The cancellation of NFT Paris, the main event on the sector’s calendar, just thirty-two days before the opening date, represents a significant episode that, however, does not reflect the overall health of non-fungible tokens. According to Siu, the real cause lies in the stance taken by French authorities towards the crypto industry.

“France, which was previously very supportive of cryptocurrencies, has completely distanced itself from this sector,” he stated. Projects like Sorare, the well-known fantasy football game based on NFTs, have come under the scrutiny of French regulators specializing in gambling control. This shift reflects a broader phenomenon: Europe is adopting an increasingly hostile attitude towards cryptocurrencies in general.

Considerations on security and practical concerns

Another element that contributed to the cancellation of the conference concerns physical security issues. In the last twelve months, France has experienced a worrying escalation of kidnapping and seizure attempts targeting executives and prominent figures in the crypto ecosystem. “Many people, including myself, have tried in some way to avoid Paris precisely because of security issues,” Siu admitted.

This factor does not constitute a negative reflection on NFT Paris itself—the conference was professionally organized—but rather on the geopolitical and regulatory situation surrounding the crypto sector at the European level. Concerns for participant safety ultimately became a decisive element in the event’s cancellation.

The conclusion: NFTs in transition, not in oblivion

The non-fungible token market is experiencing a phase of transition rather than outright death. The collapse from a billion monthly to consolidation around $300 million represents a natural filtering of genuine participants. Data remains visible and verifiable on the blockchain, allowing total transparency about who continues to believe in and invest in this type of asset.

As Siu emphasized, everything depends on perspective. Those who entered the market expecting immediate gains have every reason to be disappointed. Those who see NFTs as a new form of legitimate digital collecting, parallel to traditional collecting of rare and valuable items, will continue to find value and meaning in this ecosystem. The price crash has not extinguished NFTs: it has simply separated true collectors from speculators.