SKN | NFTs Are Not Dead: Wealthy Crypto Collectors Still Power the Market, Says Animoca’s Yat Siu

Non-fungible tokens (NFTs) are far from obsolete, despite a prolonged downturn in retail participation, according to Yat Siu, co-founder and executive chairman of Animoca Brands. Speaking on the state of digital assets, Siu argues that the NFT market has entered a quieter but more durable phase, supported primarily by high-net-worth crypto collectors rather than speculative mass adoption.

The shift reflects broader conditions across digital asset markets, where tighter liquidity, higher interest rates, and regulatory scrutiny have forced capital to concentrate around assets with perceived cultural, brand, and long-term utility value.

Market Reality: Fewer Trades, Larger Check Sizes

Global NFT trading volumes remain well below their 2021–2022 peak, when monthly turnover regularly exceeded $4 billion. In contrast, average monthly volumes through late 2025 have hovered closer to $800 million–$1 billion. However, on-chain data shows that while transaction counts are down sharply, the average value per trade has increased by more than 35% year over year.

This divergence supports Siu’s view that the NFT market is being sustained by a smaller cohort of capital-rich participants. High-end collections tied to gaming IP, digital art provenance, and cultural brands continue to command six- and seven-figure prices, even as mass-market profile picture projects fade.

Technology and Utility: Beyond Static Digital Art

Animoca Brands has long positioned NFTs as property rights infrastructure for the digital economy, particularly in gaming, metaverse environments, and intellectual property licensing. According to Siu, the strongest demand now centers on NFTs that offer embedded utility, such as access rights, revenue participation, or interoperability across platforms.

Blockchain gaming adoption remains a key driver. In 2025, daily active wallets interacting with NFT-enabled games averaged more than 1.5 million, even during periods of broader crypto market stagnation. This usage reinforces the thesis that NFTs tied to ongoing ecosystems are less sensitive to speculative cycles.

Investor Psychology: Scarcity, Status, and Long-Term Conviction

From a behavioral perspective, today’s NFT buyers resemble art collectors and strategic investors rather than short-term traders. Wealthy crypto-native individuals, many of whom accumulated capital during earlier market cycles, are increasingly focused on assets that convey status, scarcity, and historical relevance.

Siu notes that this cohort is comfortable with illiquidity and volatility, viewing NFTs as decade-long holdings rather than instruments for rapid flipping. This mindset has contributed to price stability in top-tier collections, even as broader sentiment toward speculative tokens remains cautious.

Looking ahead, the trajectory of NFTs will depend on continued integration with real-world brands, clearer regulatory treatment of digital ownership, and sustained engagement from high-conviction collectors. While the era of indiscriminate speculation may be over, the market’s core appears intact—reshaped, more exclusive, and increasingly driven by long-term capital.