Wealthy collectors support the NFT market: The truth beyond the decline

The NFT market has been experiencing a significant downturn, but behind the scenes, wealthy collectors continue to invest heavily. Their support suggests that the future of NFTs may still hold promise, despite current challenges. This article explores the reasons why these high-net-worth individuals remain committed and what this means for the overall industry. Understanding their motivations can shed light on the potential rebound and long-term viability of NFTs in the digital economy.

NFT (Non-Fungible Token) market being “dead” is merely a superficial view. Indeed, the NFT market, which once reached monthly sales of over $1 billion, has shrunk to less than one-third of that, giving the appearance of a winter era. However, Web3 developer and venture capital firm Animoca Brands co-founder Shi points out that this market is simply in a correction phase and is steadily supported by wealthy digital art enthusiasts.

Market size shrinks to one-third, but affluent buyers continue purchasing

Over the past 30 days, the monthly NFT sales volume has been approximately $300 million. Considering that during the peak from 2021 to 2022, monthly sales exceeded $1 billion, this is a significant decline. But what’s important is that this figure still represents an unignorable scale, and the decrease does not mean users have simply disappeared from the market; rather, it indicates a genuine sorting of collectors and speculators.

Shi emphasizes that the current market is driven by “wealthy, genuine collectors.” These individual investors have a strong attachment to digital art and hold assets for the long term rather than trading for short-term profits. Some wealthy individuals continue to actively purchase premium digital assets like Bored Apes and Otherdeed Lands, with the same mindset as collecting Picasso or Rolex in the physical world.

Shi himself admits that his NFT portfolio has “fallen about 80%.” However, he does not see this as a failure. Instead, he regards these assets as “important long-term holdings” and maintains a stance unaffected by short-term price fluctuations.

Desire for ownership of digital art and long-term assetization

NFTs are essentially unique digital assets recorded on the blockchain. Starting in late 2017 with the emergence of CryptoKitties—collectible digital cats on the Ethereum blockchain—NFTs have undergone a wave-like evolution. The market has experienced repeated cycles of speculative hype and correction, gradually maturing over more than five years.

For wealthy collectors, NFTs have already shifted from being “new speculative targets” to symbols of “status and cultural identity.” Shi’s metaphor is suggestive: “Picasso collectors feel a kinship with other Picasso collectors. They are part of a kind of club. The same applies to Ferrari, Lamborghini, and Rolex watches. The digital versions are essentially the same.”

This sense of community is what prevents the market from completely disappearing. The transparency of all data on the blockchain also functions as a mechanism to guarantee the authenticity and value of works.

Industry challenges seen in the cancellation of NFT Paris

The sudden cancellation of NFT Paris scheduled for April 2025 symbolizes the challenges facing the NFT market. However, Shi emphasizes that this does not directly indicate a decline in the NFT market. Instead, the bigger issue is the rapid shift in regulatory attitudes toward cryptocurrencies across France and Europe.

France was once friendly toward cryptocurrencies but has completely changed course in recent years. Gambling regulators are now closely monitoring blockchain-related businesses like the fantasy sports platform Sorare, and the pressure on NFT projects has increased.

Serious security risks and their impact on the market

Another significant factor behind the cancellation of NFT Paris is the worsening security environment. Over the past year, France has seen a series of kidnapping and attempted abduction cases involving crypto executives and investors. As a result, wealthy collectors and event participants have become cautious about visiting France due to safety concerns.

Shi is also concerned about this environment. “NFT Paris was not just about securing sponsors. Many people were trying to avoid Paris slightly for security reasons,” he states. This deterioration in the environment makes it difficult to hold international industry events and has a psychological negative impact on the entire market.

Blockchain transparency supports continuity

The greatest strength of the current NFT market is the transparency that all transactions and ownership records are permanently stored on the blockchain. This ensures the proof of authenticity, transfer of ownership, and tracking of value history.

Shi points out that “five years ago, the market was zero dollars,” to emphasize the rapid development and legitimacy of the market. His statement that “everything is relative and depends on perspective” indicates a preference for valuing the market’s increasing sophistication over its shrinking size.

Wealthy collectors shaping the next market

In conclusion, it is premature to talk about the “end” of the NFT market. Rather, it is part of a process of the market clarifying itself—specifically, the exit of speculators and the refinement toward wealthy, genuine collectors. Even if the market size temporarily shrinks, as long as blockchain transparency, digital art ownership desire, and a global community of wealthy collectors exist, the NFT market will continue to evolve.

Industry challenges (regulatory tightening, security risks) are real, but markets that overcome these challenges will build more mature and sustainable ecosystems.