The non-fungible token (NFT) sector skilled explosive progress in 2021. Artists, traders, and collectors have been all swept up within the frenzy. But, its meteoric rise was adopted by a downturn, prompting questions concerning the sector’s sustainability.
Alexander Salnikov, co-founder of Rarible, believes the market just isn’t dealing with a collapse however somewhat a shift. In an unique interview with BeInCrypto, Salnikov supplied his perspective on the state of NFTs in 2025 and their function transferring ahead.
Are NFTs Nonetheless Related in 2025, or Have They Run Their Course?
The rise of NFTs, fueled by pleasure and hypothesis, was inevitable for a market experiencing such speedy innovation. Nonetheless, like many rising applied sciences, this early surge was adopted by a correction. The hype gave strategy to the realities of market maturation and sustainability.
In line with the most recent report by DappRadar, the artwork NFT market noticed a powerful surge in 2021, with buying and selling volumes reaching $2.9 billion. Nevertheless, by the primary quarter of 2025, the buying and selling quantity was recorded at simply $23.8 million, marking a 93% decline.
NFTs Buying and selling Quantity Over the Years. Supply: DappRadar
Equally, the variety of lively merchants peaked at a file excessive of 529,101 in 2022. But, this determine sharply declined by 96%, with simply 19,575 lively merchants remaining by Q1 2025.
A earlier business report from DappRadar revealed that the underwhelming efficiency wasn’t only a pattern in 2025. In reality, 2024 was one of many worst-performing years for the NFT market since 2020. As well as, BeInCrypto additionally reported on a examine that exposed 98% of NFT tasks launched in 2024 have been basically “useless.”
Regardless of the decline, Rarible’s Salnikov has maintained a constructive outlook for the sector. He emphasised the significance of a transparent goal in the case of NFTs.
“As soon as upon a time, after the .com burst, the headlines rang that the web was solely a fad. However as extra firms built-in the expertise into on a regular basis use instances, it grew to become ingrained as part of life,” he informed BeInCrypto.
Salnikov argued that belief shortly diminishes when NFTs are considered merely as speculative belongings. In distinction, tasks rooted in actual neighborhood engagement or offering tangible utility supply clear worth, making their price simply understood.
In the meantime, somewhat than viewing the sector’s decline as a collapse, the chief sees it as a market recalibration, with the main target shifting away from speculative hype towards tasks with extra sustainable worth.
“The speculative section had its second, however now we’re watching NFTs evolve into precise infrastructure—instruments creators use to construct communities, merchandise, and new digital economies,” he stated.
NFTs Past the Hype: Unlocking Actual-World Utility
Salnikov careworn that utility within the NFT house is now not a distant idea—it’s taking place proper now. Creators are utilizing NFTs for membership, manufacturers for loyalty packages, and video games for participant id.
He pointed to a rising convergence between the digital and bodily worlds, with NFTs being tied to merchandise, occasions, and even real-world belongings. Binance Analysis’s April 2025 report additional corroborates this pattern.
The report spotlighted a number of real-world partnerships, indicating curiosity in NFTs. Examples embrace Azuki’s physical-backed NFT with Michael Lau, The Sandbox’s Jurassic World collaboration, EGGRYPTO’s anime characters with Eparida, and Sony’s Soneium platform partnering with LINE to create Web3 mini-apps.
“The following wave of progress isn’t about chasing a pattern—it’s about unlocking new sorts of possession and entry that really feel native to the web era,” famous Salnikov.
Whereas this angle provides optimism, the truth for a lot of firms is kind of totally different. Attributable to low buying and selling volumes, main platforms like Bybit, X2Y2, and Kraken have resorted to discontinuing their NFT providers.
People who didn’t shut down explored different avenues. As an example, Magic Eden expanded past NFTs with the acquisition of Slingshot. However, Salnikov dismissed this technique, commenting,
“We’re not attempting to bolt on non-NFT options simply to remain busy—we’re constructing NFT commerce that really suits the communities utilizing it.”
He defined that this method makes use of modular, customizable on-chain marketplaces. Creators can tailor them to suit their particular audiences, whether or not it’s a gaming venture, an L3, or a legacy model.
“NFTs are the function—they simply want the precise framing,” the Rarible co-founder acknowledged.
When Fame Fades: The Diminishing Returns of Superstar-Backed NFTs
Going again, an fascinating pattern in the course of the NFT hype period was the involvement of celebrities. Excessive-profile figures like Justin Bieber, Madonna, and Neymar jumped on the bandwagon, attracting substantial consideration to the sector. Nonetheless, their funding methods haven’t fared notably properly.
In January 2022, Bieber spent 500 ETH (roughly $1.3 million on the time) on Bored Ape #3001. This NFT is from Yuga Labs’ Bored Ape Yacht Membership (BAYC) assortment.
Nevertheless, in keeping with the most recent information, the NFT is price solely 13.51 WETH (round $24,174), a decline of 98.1%. Though the singer hasn’t bought his NFT, it has acquired little consideration these days, with no promotional efforts or notable discussions round it.
Thus, whereas celebrities can carry consideration to NFTs, this highlights the necessity for substance past the title itself. As Salnikov identified, celeb involvement within the sector is fleeting.
In line with him, a star title alone can’t change real artistic course or a robust neighborhood.
“Superstar drops will come and go—it’s the tradition behind them that determines in the event that they stick,” he remarked.
He argued that celebrities treating NFTs as mere merchandise deters audiences. However, when an NFT drop is intentional and actually faucets into one thing significant like music, trend, or fandom, that’s the place the lasting worth is discovered.
“We’re far more concerned about working with creators who’re constructing for the lengthy haul than simply chasing headlines,” Salnikov disclosed to BeInCrypto.
The chief additionally outlined the necessity for a extra accessible and user-friendly method for attracting customers. He detailed that onboarding customers shouldn’t really feel “like a tech demo.” Salnikov pointed to Rarible for instance.
In line with him, Rarible focuses on making certain that every market constructed on its platform is a product folks genuinely wish to use. This includes options reminiscent of fiat onramps, low-cost mints, a clear consumer interface, and, most significantly, content material that resonates with customers.
“We’re not promoting NFTs—we’re powering experiences that simply occur to be onchain,” Salnikov concluded.
Whereas the NFT market faces ongoing challenges, it stays to be seen whether or not the business is getting into a brand new section of progress or if additional obstacles lie forward in its evolution.
