Market Trends and Future Outlook
Yat Siu, co-founder and executive chairman of Animoca Brands, noted that while the NFT market has declined from its peak of over $1 billion in monthly sales, it is far from dead. Today's figures—around $300 million per month—represent significant growth compared to where things stood just five years ago.
Shifting Collector Behavior
The current market is being driven by wealthy digital art collectors who focus on long-term value rather than quick profits. This trend mirrors the culture of traditional art, luxury cars, or high-end watch collecting, suggesting that NFTs are gradually becoming part of the mainstream asset class.
Investment and Confidence Challenges
Although Siu’s NFT portfolio dropped by nearly 80%, he never considered selling for short-term gain, treating these assets as long-term investments. He believes the decline in market confidence is not due to NFTs themselves but rather external factors, including regulatory shifts and increasing security concerns.
Challenges in Europe
Regarding the cancellation of major NFT events in France, Siu emphasized that the issue lies not with NFTs but with Europe’s increasingly restrictive regulatory stance toward digital assets. Combined with recent security incidents affecting crypto users and investors, these factors have significantly dampened participation and enthusiasm.