Tech • IA • Crypto
For years, these images were sold as the future of digital. Then the music stopped
5/10TL;DR
The NFT market has sharply collapsed since its 2021 peak, with trading volumes down nearly tenfold and major platforms shutting down.
KEY POINTS
Celebrity-driven boom
In 2021, NFTs such as the Bored Ape Yacht Club became status symbols among celebrities and wealthy buyers. Figures like Neymar, Eminem, and Justin Bieber reportedly spent between hundreds of thousands and over $1 million on individual tokens, using them as social media profile images to signal exclusivity.
What buyers actually owned
NFTs did not grant ownership of a physical or unique digital object but rather a blockchain entry certifying ownership of a specific token linked to an image. In many cases, the image itself remained hosted on standard servers, meaning the perceived value relied heavily on market demand rather than intrinsic utility.
Speculative market dynamics
Prices were largely driven by speculation, with buyers expecting to resell at higher prices. This created a “greater fool” dynamic where value depended on the presence of future buyers willing to pay more, rather than underlying fundamentals.
Market collapse
The NFT market has since contracted dramatically, with total trading volume falling from around $50 billion in 2022 to approximately $5.5 billion in 2025, representing a decline of nearly 90%. Many once high-profile collections have lost most of their value.
Platform shutdowns
Major platforms have exited the space. Kraken and Nifty Gateway have closed NFT operations, while Binance, the world’s largest crypto exchange, has discontinued its NFT platform, giving users a limited window to transfer assets before access is lost.
Cristiano Ronaldo case
Binance’s NFT partnership with Cristiano Ronaldo illustrates the downturn. Tokens initially sold for as much as $77 dropped to around $1 within a year. The promotion has also led to a reported $1 billion lawsuit, highlighting legal risks tied to celebrity endorsements.
CONCLUSION
The rapid rise and fall of NFTs underscores the volatility of speculative digital assets and raises questions about their long-term viability beyond hype-driven markets.