NFT Market Downturn Is a Shift, Not a Collapse, Says Rarible Co-Founder Alexander Salnikov

The non-fungible token (NFT) sector skilled explosive progress in 2021. Artists, buyers, and collectors had 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 shouldn’t be dealing with a collapse however moderately a shift. In an unique interview with BeInCrypto, Salnikov supplied his perspective on the state of NFTs in 2025 and their function shifting 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 fast 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 response to the newest report by DappRadar, the artwork NFT market noticed a powerful surge in 2021, with buying and selling volumes reaching $2.9 billion. Nonetheless, 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 energetic merchants peaked at a document excessive of 529,101 in 2022. But, this determine sharply declined by 96%, with simply 19,575 energetic merchants remaining by Q1 2025.

A earlier trade report from DappRadar revealed that the underwhelming efficiency wasn’t only a pattern in 2025. The truth is, 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 had been primarily “useless.”

Regardless of the decline, Rarible’s Salnikov has maintained a optimistic outlook for the sector. He emphasised the significance of a transparent function in relation to 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 know-how into on a regular basis use circumstances, it grew to become ingrained as part of life,” he informed BeInCrypto.

Salnikov argued that belief shortly diminishes when NFTs are seen merely as speculative property. In distinction, tasks rooted in actual neighborhood engagement or offering tangible utility supply clear worth, making their value simply understood.

In the meantime, moderately than viewing the sector’s decline as a collapse, the chief sees it as a market recalibration, with the main focus shifting away from speculative hype towards tasks with extra sustainable worth.

“The speculative part 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 mentioned.

NFTs Past the Hype: Unlocking Actual-World Utility

Salnikov confused that utility within the NFT area is not a distant idea—it’s occurring 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 property. Binance Analysis’s April 2025 report additional corroborates this pattern.

The report spotlighted a number of real-world partnerships, indicating curiosity in NFTs. Examples embody 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 subsequent 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 technology,” famous Salnikov.

Whereas this attitude affords optimism, the truth for a lot of firms is kind of totally different. As a result of 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 various avenues. As an example, Magic Eden expanded past NFTs with the acquisition of Slingshot. However, Salnikov dismissed this technique, commenting,

“We’re not making an attempt to bolt on non-NFT options simply to remain busy—we’re constructing NFT commerce that really matches 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 undertaking, an L3, or a legacy model.

“NFTs are the function—they only want the correct framing,” the Rarible co-founder said.

When Fame Fades: The Diminishing Returns of Superstar-Backed NFTs

Going again, an attention-grabbing 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 significantly nicely.

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.

Nonetheless, based on the newest information, the NFT is value solely 13.51 WETH (round $24,174), a decline of 98.1%. Though the singer hasn’t offered his NFT, it has acquired little consideration currently, with no promotional efforts or notable discussions round it.

Thus, whereas celebrities can deliver consideration to NFTs, this highlights the necessity for substance past the identify itself. As Salnikov identified, superstar involvement within the sector is fleeting.

In response to him, a celeb identify alone can’t exchange real artistic route 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, vogue, or fandom, that’s the place the lasting worth is discovered.

“We’re far more fascinated with 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 response to him, Rarible focuses on making certain that every market constructed on its platform is a product folks genuinely need to use. This includes options reminiscent of fiat onramps, low-cost mints, a clear person 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 trade is getting into a brand new part of progress or if additional obstacles lie forward in its evolution.