There has been quite a sharp decrease in sales and activity in the NFT market, but this more likely points to stabilization after a period of frenzied upside, rather than a complete collapse.
The decline of interest in NFTs may be due to several factors. First, the initial excitement and speculative interest inevitably faded when people started to more soberly assess the actual value and applicability of NFTs. Second, the overall economic situation and instability in the cryptocurrency market may have made investors more cautious. Third, market saturation may have occurred, with the supply of NFTs significantly exceeding demand.
That said, NFTs still have potential. The fact that some collections, such as CryptoPunks, continue to generate significant sales volumes means that there is still interest in high-quality and unique projects. In addition, the development of blockchain technologies and the rollout of new NFT apps (for example, in the gaming industry or for digital ID) may open up new growth opportunities.
In our view, the issue here is not the failure of NFTs, but rather a transition from speculative hype to a more mature and sustainable market. In the future, NFTs will likely find their place in a variety of areas, ranging from art and collectibles to practical applications in business and technology. Needless to say, this will take time, innovation, and the ability to overcome the current limitations associated with this technology.