The NFT market rebounds thanks to savvy collectors, according to Yat Siu

The NFT market regularly sparks debates about its viability, but according to Yat Siu, co-founder of Animoca Brands, reports of the death of non-fungible tokens are greatly exaggerated. Far from being moribund, the sector remains lively with a community of wealthy collectors who maintain active engagement, although radically different from the heights reached a few years ago.

Wealthy collectors drive the NFT market

According to Siu, affluent digital art enthusiasts are the main engine of the contemporary NFT market. These collectors, similar to heirs of family offices passionate about Picasso’s works, develop a genuine affinity for certain creations and categories of digital assets. During a crypto conference in St. Moritz, Siu stated: “NFTs remain popular among wealthy collectors. I myself am a big collector, and I share this perspective with my peers. It’s a true community.”

The analogy with traditional collectors proves revealing. Just as a Ferrari or Rolex enthusiast connects with others passionate about the same universe, digital art collectors form a close-knit community around their preferences. Yat Siu emphasizes that this phenomenon simply represents a digital transposition of millennia-old collecting practices.

A resilient NFT market despite volume declines

The NFT market has indeed undergone spectacular transformations. After peaking at one billion dollars monthly in 2021/22, transaction volumes have significantly decreased. Nevertheless, recent data show stabilization around 300 million dollars over the past 30 days, a figure that indicates ongoing and substantial activity.

Siu admits that his own personal portfolio has contracted substantially, “by about 80% or more.” However, he clarifies that these acquisitions have never been short-term investments. “They are assets intended for long-term preservation,” he explains, highlighting an investment philosophy that contrasts with pure speculation.

The history of NFTs dates back to early 2018, when CryptoKitties marked the launch of the phenomenon on the Ethereum blockchain. Since then, the sector has experienced several cycles: an initial wave with digital collectible cats, followed by a maturation period with larger capital inflows. The peak in 2021/22 solidified this trend before a natural market correction.

France moves away from crypto: impacts on the NFT ecosystem

The cancellation of NFT Paris, a major event on the industry calendar, symbolizes broader geopolitical challenges. Siu attributes this cancellation not to a condemnation of NFTs as a technology, but rather to a shift in political and regulatory orientation in France. “France, once supportive of crypto, has completely turned away from this sector,” he estimates.

This new French stance affects innovative projects: platforms like Sorare, which offer fantasy football experiences based on NFTs, have come under scrutiny from gambling regulators. This restrictive trend is not isolated. Across Europe, a wave of anti-crypto measures is gaining ground, affecting the continent’s attractiveness for investors and creators in the sector.

Beyond regulatory issues, security concerns have hindered the organization of the event. France has recorded several kidnapping attempts targeting crypto executives and investors. These incidents have discouraged many actors, including Siu himself, from participating or traveling to France. “NFT Paris not only suffered from a withdrawal of sponsors. Many personalities preferred to avoid Paris due to security issues,” Siu notes.

Perspectives and accessible data

Siu reminds us, however, that the sector is just beginning to consolidate. “Remember that five years ago, this market was worth zero dollars,” he affirms. The relative resilience of the current ecosystem should therefore be contextualized. The major strength of NFTs and blockchain lies in transparency: “One of the core strengths of the system is the accessibility and verifiability of all data directly on the blockchain,” Siu concludes, emphasizing that the rigor of data provides a solid foundation for a sustainable NFT market.