Web3 executives view a sharp drop in nonfungible token (NFT) prices as a sign of the technology maturing rather than a cause for concern. Yemel Jardi, the executive director of the Decentraland Foundation, stated, “I wouldn’t describe the NFT market as regressing; instead, it’s evolving.”
This perspective follows a September report by dappGambl, which analyzed over 73,000 NFT collections and found that up to 95% of the studied NFTs had lost value, with prices, sales volume, and transactions declining over the past year.
Jardi emphasized that markets go through cycles, and it’s natural for there to be periods of adjustment. He attributed the decline in NFT prices to “speculative trading” and suggested that the value of NFTs should be linked to their practical use.
Anjali Young, the co-founder of the tokenized community-management platform Collab.Land, isn’t surprised by the negative sentiment surrounding NFTs. She explained, “Any innovation, especially one with financial implications, cultural significance, and social status, will face scrutiny during downturns.”
Young believes that many projects encountered challenges after marketplaces like OpenSea eliminated mandated royalty fees in late August. Nevertheless, she maintains that NFTs are here to stay and anticipates their increased use in loyalty programs, rewards, advertising, and as proof of authenticity in the coming months.