NFTs Are Not Dead: How Wealthy Collectors and Utility Revolution Are Revitalizing the NFT Market

“NFT is not dead; it is just maturing.” Yat Siu shared his observations at the CfC St. Moritz cryptocurrency conference. Despite the fact that his personal NFT investment portfolio has fallen about 80% from its peak, his long-term conviction remains unchanged.

According to the latest market data, in the first week of 2026, NFT weekly sales rebounded strongly by approximately 30%, reaching nearly $85 million, ending months of downturn.

01 Market Cooling and Value Consolidation

The NFT market has experienced a rollercoaster journey. From the frenzy in 2021 to 2022, where monthly sales easily surpassed $1 billion, to the current more rational market sentiment.

The flagship French NFT event, NFT Paris, was unexpectedly canceled a month before its opening, seemingly adding a footnote to the market’s downturn. However, this surface-level cooling is actually a process of value consolidation and refinement.

Yat Siu has a clear understanding of this. Although his personal NFT collection’s value has significantly shrunk, he regards it as a “long-term asset,” whose worth transcends short-term price fluctuations.

This mindset is not uncommon among seasoned collectors, who see top-tier NFTs as the “Picasso paintings” of the digital world, establishing a community culture based on shared taste and values.

02 Collector-Driven New Market Logic

The driving forces behind the current NFT market have undergone a fundamental shift. Yat Siu points out that the nearly $300 million in monthly NFT sales is mainly driven by affluent digital art enthusiasts.

He cites billionaire Adam Weitsman as an example, a collector who publicly purchases high-end NFT projects like Otherdeed virtual land and Bored Apes, demonstrating the new generation of wealth’s recognition of digital assets.

“Five years ago, this was a zero-dollar market,” Yat Siu reminds us of the importance of maintaining a historical perspective. Like traditional art collecting, NFT collecting has also formed a specific community culture.

“Picasso collectors feel a kinship with other Picasso collectors; you’re like members of the same club,” Yat Siu explained. “It’s the same for Ferrari, Lamborghini, or Rolex watches. This is just the digital version.”

03 From Digital Collectibles to Practical Assets

NFTs in 2026 are undergoing a profound identity transformation, evolving from speculative digital collectibles to functional infrastructure.

This shift is supported by three main pillars: gamified applications, AI integration, and tokenization of real-world assets (RWA).

Blockchain gaming has become the primary driver of NFT adoption, accounting for 38% of all on-chain transactions. Revenue in this sector reached $21.6 billion in 2025, with a global player base exceeding 100 million.

Platforms like Decentraland and The Sandbox are tokenizing virtual real estate, characters, and tools, enabling users to trade assets across ecosystems.

AI is redefining NFTs as generative and adaptive assets. AI-curated NFT collections now use algorithms to create personalized artworks, while on-chain AI agents utilize NFTs for identity verification and task execution.

04 NFT Market Infrastructure Revolution

As NFT use cases expand, infrastructure is also undergoing significant upgrades. Leading NFT brands are launching dedicated chains to break free from third-party network limitations.

In 2025, industry leaders like Pudgy Penguins and Azuki pioneered customized blockchain solutions.

Pudgy Penguins’ Abstract chain offers a user-friendly Layer 2 experience, featuring innovative “panoramic governance” and seamless email registration.

Meanwhile, Azuki’s collaboration with Arbitrum to create AnimeChain has become a vibrant hub for anime enthusiasts, supported by the ANIME token.

The development of these dedicated chains allows projects to significantly reduce gas fees and alleviate network congestion, paving the way for large-scale adoption.

05 Market Outlook and Opportunities in 2026

Looking ahead to 2026, the NFT market shows strong growth potential. Data from the predictive market Polymarket indicates a 65% probability of a cryptocurrency recovery in 2026, with NFTs viewed as a key driver of utility-based innovation.

Top-tier collectibles are already showing signs of a clear rebound. According to CoinMarketCap NFT data, the total NFT market cap has reached $828.4 million, with 24-hour total trading volume increasing by 24%, indicating renewed investor interest.

Although some projects like Milady have declined, collections like Lil Pudgys have achieved an astonishing 144% increase. Among top NFT series, Moonbirds saw a 141% sales increase in the past 24 hours, making it one of the most prominent performers.

This market segmentation suggests that investors are becoming more cautious, focusing on projects with long-term value and utility rather than blindly chasing hype.

06 Risks and Challenges

Despite the optimistic outlook, the NFT market still faces a series of challenges. Yat Siu specifically pointed out that regulatory shifts in Europe, especially France, pose significant obstacles to industry development.

Security issues are another major concern. Over the past year, France has seen a series of kidnapping and attempted kidnapping incidents targeting crypto executives and investors.

Yat Siu candidly stated, “Many people, including myself, try to avoid going to Paris as much as possible because of security concerns.”

Additionally, market volatility and competition remain unavoidable risks. The failure rate of the market by 2026 could be as high as 90%, indicating that this field is still in its early stages of development.

Future Outlook

Digital art collectors are now selecting NFT projects as carefully as authentic Picasso artworks, while practical NFTs are quietly building value networks in gaming, AI, and physical assets. As Pudgy Penguins’ dedicated chain handles low-cost transactions and AI-driven NFTs interact intelligently with holders, a clear future landscape is unfolding.

Yat Siu’s insights are validated by data: despite the market’s total valuation being only $828.4 million, the 24-hour trading volume has increased by 24%. This subtle numerical change hints that the market is shifting from mere speculation toward value exchange based on real needs and utility.