NFTs are a form of digital ownership tied to a unique asset such as art, music, or memes. They could include memes or even actual pieces of art. At their peak, major houses like Sotheby’s and Christie’s sold NFTs for multimillion-dollar sums, with celebrities such as Jimmy Fallon promoting the trend, but the industry’s understanding lagged behind the hype. Within roughly a year, the market collapsed.
Estimated trading volumes dropped from $4 billion to around $800 million, and research suggests that 95 percent of NFTs are now worthless. Even as some supporters insist the underlying technology still holds value, the broader market narrative shifted toward questions about ownership, authenticity, and fraud. The saga included high-profile moments such as Christie’s $69 million NFT sale for Beeple’s Everydays series, the burning of NFT art by Damien Hirst, and a wave of stories about scams, broken promises, and celebrities facing losses.
Over time, debates hardened around whether buying an NFT actually conveys rights to the artwork, who would police fraud, and how irreversible blockchain transactions could be protected. Despite the downturn, a few institutions and brands have continued to explore NFT applications, underscoring that the technology may have use cases if properly overseen.
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