🟡 NFT Market: Revival or the Final Chapter?

The NFT sector has been back in the news lately. After a promising summer with rising volumes and renewed interest, the market has once again shown signs of weakness. Let’s examine the latest developments and what they may signal for the future of NFTs.

📊 Summer Momentum

Data from CryptoSlam shows that July and August were the strongest months for NFTs since February. Weekly trading volumes ranged from $115M to $170.5M, while the sector’s market capitalization surpassed $9.3B.

This growth was driven by several factors:

• Base network activity, which pushed it into the top three by trading volume,

• Cultural expansion, such as the opening of a permanent NFT gallery in Ibiza,

• Celebrity involvement, with Snoop Dogg selling nearly 1,000 NFT gifts for Telegram in just 30 minutes.

The industry appeared to regain some of its lost vitality.

📉 September Slowdown

However, September brought a notable reversal. Weekly volumes declined to $92M — the lowest since June. Other key metrics also deteriorated:

• The number of unique buyers fell by 58% since June,

• Average sale prices dropped from $104 to $72 within two weeks,

• Major players such as Bybit, Kraken, and GameStop shut down their NFT marketplaces.

🎨 Institutional Pullback

The downturn was underscored by Christie’s decision to close its dedicated digital art department. NFTs will now be sold only within the broader “20th–21st Century Art” category.

According to consultant Fanny Lakoubay, the move reflects a “shrinking art market” and the inability to justify a standalone department amid declining revenues.

Competing Narratives

The current state of the NFT market can be interpreted in several ways:

• Optimists point to the summer rebound and innovative use cases as the foundation for long-term recovery.

• Skeptics argue that NFTs have failed to establish enduring value, with recent activity amounting to little more than a short-lived spike.

• Reality check: the sector still lacks a definitive “killer feature.” For now, NFTs remain confined to niche applications such as Telegram gifts and art sales, far from the mainstream hype of 2021.

👀 A Niche Growth Story

One notable exception is NFT gifts on Telegram, a segment that continues to expand. Over the past month, its capitalization nearly doubled — from 26.5M TON ($79M) to 50.9M TON ($159M).

❗️ Outlook

The explosive boom of 2021 remains a distant memory, and it is uncertain whether such levels of hype will ever return. Nonetheless, opportunities persist: niche segments and timely collections can still deliver meaningful returns for those positioned correctly.