NFT in Transition: Wealthy Collectors Continue to Drive the Market

The NFT ecosystem has undergone significant transformation since reaching its peak. From monthly sales volumes exceeding $1 billion in 2021-2022, the digital collectible sector now operates in a much more segmented state, with market activity around $300 million per month in recent periods. However, these figures do not reflect market death—rather, they indicate consolidation toward a more mature and structured phase.

According to Yat Siu, one of the founders of Animoca Brands, the NFT market still maintains dynamic momentum, albeit in a different state from the previous boom era. His company, focused on Web3 development and venture investments, has witnessed this evolution from a leading industry position. Siu emphasizes that the current NFT market is dominated by institutional collectors and high-caliber investors with deep sector understanding.

The NFT Market Is Still Alive, Just in a Different State

The current dynamics of the NFT market cannot be separated from the role of wealthy collectors who continue allocating capital to premium digital assets. In an interview at the CfC St. Moritz crypto conference, Siu contrasted modern NFT collector approaches with traditional art collecting. Just as family heirs collect Picasso works, or enthusiasts own fleets of Ferrari and Lamborghini vehicles, NFT collectors form exclusive communities bound by passion for certain digital assets.

“This phenomenon is similar to Rolex watch collections—everything is a digital version of traditional collecting,” Siu revealed. Investors in this state do not buy NFTs for short-term profit but as long-term investments aligned with traditional collecting philosophies.

One example representing this pattern is Adam Weitsman, a billionaire who openly acquired Otherdeed lands—virtual land certificates in Otherside, a blockchain-based metaverse developed by Yuga Labs—while also collecting Bored Apes NFTs. Such transactions demonstrate that, in the current market state, major players remain actively allocating assets into the NFT ecosystem.

Premium Collectors: The Backbone of the Digital Ecosystem

Siu’s personal NFT portfolio has experienced significant depreciation—down about 80% or more from peak valuation. However, he emphasizes that this decline is not a reflection of flawed investment strategies but a natural consequence of market correction after the speculative phase ended. Siu sees himself as a long-term holder who continues to believe in the fundamental value of his assets.

Historical context provides important perspective. The first NFTs appeared on the Ethereum blockchain in late 2017 with the viral Cryptokitties collection. After a dormant period, the next wave of NFTs arrived with greater momentum, peaking in 2021-2022 when the ecosystem was accompanied by massive venture capital and unprecedented mainstream media attention. Currently, the sector is in a consolidation phase—transitioning from a speculative market to one dominated by institutional participants.

Regulatory and Security Challenges in Europe

The cancellation of NFT Paris, an annual flagship gathering of the NFT ecosystem in Europe, does not solely indicate industry collapse. Instead, it reflects changing regulatory and security climates in the region. France, once considered a supporter of crypto, has experienced significant policy shifts in recent years.

Siu explains that France’s politico-regulatory environment plays a substantial role. NFT projects like Sorare, which operate blockchain-based fantasy games, are now under strict scrutiny from local gambling regulators. This trend reflects Europe’s growing skepticism toward crypto assets and blockchain technology in general.

Equally important are security issues. Over the past year, France has experienced a series of kidnapping incidents involving prominent crypto executives and investors. These events create an environment less conducive to large-scale industry gatherings. According to Siu, many potential participants, including himself, actively avoid hosting events in Paris due to personal security concerns.

Long-Term Perspectives from Institutional Investors

Although NFT valuations have contracted, Siu reminds that a temporal perspective influences market interpretation. “Remember that five years ago, this ecosystem had a valuation of zero dollars,” he said. Therefore, the current NFT market—despite being down from its peak—still shows exponential growth when viewed long-term. All transaction activities are transparently recorded on public blockchains, allowing anyone to perform independent due diligence on the ecosystem.

Siu emphasizes that in a more mature market, remaining participants are those with capital stability and long-term conviction. Digital art collectors, venture capital firms, and institutional investors who understand blockchain technology continue to see intrinsic value in NFTs as tokenized digital assets. This consolidation phase, although less glamorous than the boom period, indicates an evolution toward a more sustainable and institutional-grade ecosystem.