NFTs expected to surpass 2021 peak says Animoca’s Yat Siu

Animoca Brands chairman Yat Siu expressed optimism about the future of non-fungible tokens (NFTs), predicting they will exceed their 2021 performance levels.

In an interview with Cointelegraph during the Bitcoin (CRYPTO:BTC) MENA event in Abu Dhabi, Siu stated, “NFTs will be even bigger” than during their peak years.

At their height in 2021 and early 2022, NFT monthly trading volumes ranged from $1 billion to $5 billion, peaking at $6 billion in January 2022, according to CryptoSlam.

However, volumes have since declined, struggling to reach $1 billion, with several projects, including Nike-owned RTFKT and Kraken’s NFT business, announcing closures.

Siu acknowledged these challenges but framed them as part of a normal business cycle.

“That's life, right? Some projects will work, and some will fail,” he commented, referring to RTFKT's closure.

He compared these failures to other industries, noting that the shutdown of individual projects does not reflect the broader health of the NFT market.

The chairman emphasised NFTs’ potential to serve as modern status symbols, akin to luxury goods.

“When we’ve made money, we don’t spend it on making more money — we spend it on luxury goods,” Siu said.

He argued that NFTs, much like a Picasso painting or luxury cars, are investments in one’s reputation and symbolic capital.

Siu highlighted specific NFT collections such as Bored Apes, Pudgy Penguins, and CryptoPunks as examples of digital assets that enhance personal status.

“If I own a Picasso, I have a reputation that’s very special. It’s the same with NFTs,” he explained.