NFT prices are a long way from their 2021 and 2022 highs, and the sector has taken another symbolic hit after NFT Paris was canceled just a month before it was due to begin. Yat Siu, co-founder of Animoca Brands, does not see that as proof of collapse. His view is simpler: the market has cooled, but it is still very much alive.
Speaking in an interview at the CfC St. Moritz crypto conference, Siu said wealthy collectors remain the main force behind current NFT activity. He described the demand as close to traditional collecting behavior. A buyer may develop a lasting attachment to a specific style of digital art, much as an art collector might focus on Picasso. That attachment often comes with a club-like dynamic. Owners of similar pieces tend to see themselves as part of the same circle.
Monthly NFT sales are still near $300 million
Siu said NFTs are still popular among wealthy collectors and added that he is a major collector himself. In his telling, the pattern is not very different from collecting Picassos, Ferraris, Lamborghinis, or Rolex watches. The difference is that this version is digital.
He also said his personal NFT portfolio is down by about 80%. Still, he framed those purchases as long-term holdings rather than assets bought for a quick flip. “These are long assets that matter,” he said.
As an asset class, NFTs first appeared on Ethereum in late 2017, with collectible cats marking an early wave. The market moved in cycles after that and reached its peak in 2021 and 2022, when monthly sales were above $1 billion. Today, Siu pointed to monthly NFT sales close to $300 million, driven mainly by affluent digital art buyers.
Siu points to public buyers and on-chain data
To support that argument, Siu cited billionaire Adam Weitsman as an example of a high-profile collector still buying NFTs publicly, including Otherdeed lands and Bored Apes. Otherdeed tokens represent land deeds in Otherside, the 3D blockchain-based virtual world created by Yuga Labs.
Siu also argued that perspective matters. Five years ago, he said, this was a $0 market. Now the activity is recorded on-chain and visible in the data, which in his view makes it hard to argue that the market has disappeared.
NFT Paris cancellation tied to France's climate and security concerns
On the cancellation of NFT Paris, Siu said it should not be read as a judgment on NFTs themselves or on the quality of the conference. He placed the blame on changes in France’s stance toward crypto. France, he said, was once strongly supportive of the sector but has since shifted away from it. In the NFT segment, projects such as fantasy soccer game Sorare have also come under scrutiny from gambling regulators.
Security was the other issue he raised. Over the past year, France has seen several kidnapping and attempted abduction cases involving crypto executives and investors. Siu said NFT Paris was not only hurt by trouble attracting sponsors. Some people, himself included, have also been trying to avoid Paris because of those security risks.