Reports Over Exaggerate NFT Demise

Toshiuki Otsuka, who founded a snap-to-earn platform, strongly opposed the narrative of NFT demise and argued that NFTs are “evolving.”

The narrative concerning non-fungible tokens (NFTs) is in the process of changing. Some crypto community members are querying the viability of digital collectibles after a period of explosive growth and a subsequent decline in trading volumes.

While some individuals compose obituaries for NFTs, those directly involved with the asset class disagree. The market is maturing, according to experts in the Web3 sector, rather than disappearing. NFTs establish themselves in more practical and sustainable applications as the hoopla subsides.

To ascertain the present status of NFTs, Cointelegraph reached out to blockchain professionals.

NFTs are going through a cycle of correction

Anoir Houmou, the founder and CEO of RECRD, a video engagement platform sponsored by Sui, contends that the notion that NFTs are extinct is an “oversimplification” because every emerging technology undergoes correction cycles. Houmou elaborated:

“Recent trends indicate a maturing of the market after the explosive growth witnessed over the last few years. We’re moving into a phase where the focus is on sustainability, real-world utility, and integration into broader technological ecosystems.”

The executive further stated that the emergence of numerous new SocialFi and GameFi platforms suggests a progression. Houmou also noted that the community can anticipate a rise in institutional investment as NFTs become more purpose-driven.

Although NFT volumes are declining, Yale ReiSoleil, CEO and co-founder of NFT trading platform Untrading, contends that this is a natural market correction rather than a death knell. ReiSoleil elaborated:

“NFT volumes are down significantly, but that doesn’t necessarily mean they’re dead. The market is likely correcting after a period of hype.”

Oh Thongsrinoon, the chief marketing officer at Altava Group, reiterated the sentiments, which facilitates the connection between luxury brands and Web3. “The tokenization of real-world assets is expanding healthily, as evidenced by the NFT space, as with any cycle, there is a peak.”

“This indicates a robust sentiment toward NFTs, as Bitcoin-based NFTs have recently achieved sales volumes of $148 million, and Bitcoin is one of the top three leading blockchain networks for NFT sales,” Thongsrinoon noted.

Execs believe that NFTs are not dead

When asked whether NFTs were extinct, Toshiuki Otsuka, the inventor of the snap-to-earn platform SNPIT, categorically denied this assertion. Otsuka disclosed to Cointelegraph:

“Absolutely not. NFTs are evolving beyond collectibles into tools for digital ownership and utility. Market corrections are normal and signal maturation.”

The executive thinks that NFT technology has the potential to revolutionize a variety of industries. “We can anticipate the emergence of even more practical and innovative applications as the technology matures, which will lead to a broader adoption and utility,” Otsuka stated.

At the same time, Houmou contended that NFTs have progressed beyond their “infancy” stage and that developers are beginning to devise novel and innovative applications for them.

“NFTs are transforming industries, including the $250 billion creator economy, by providing transparency, security, and new revenue models, and are becoming more than just digital collectibles,” Houmou explained.

Thongsrinoon also contended that the two “best use cases for NFTs” are real-world asset (RWA) tokenization and proof of ownership. The executive maintains that incorporating tangible and trustworthy value into NFTs enhances their credibility.

“The technology that underpins NFT is such that it is a perfect and immutable smart contract, and it has a wide range of potential applications, including real estate and government bonds,” Thongsrinoon noted.