NFTs are poised to become even bigger in 2022 compared to their popularity in 2021 according to Animoca's CEO Yat Siu.

In an exclusive interview with Cointelegraph at the Bitcoin MENA event in Abu Dhabi, Animoca Brands chairman Yat Siu expressed his optimism about the non-fungible token (NFT) market. Despite the recent decline in NFT sales volumes and the closure of several high-profile projects, Siu believes that NFTs will "be even bigger" than during their peak in 2021 and 2022.

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A Brief History of NFT Sales Volumes

During their peak in January 2022, NFT monthly volumes reached a staggering $6 billion. However, since then, sales volumes have declined significantly, struggling to reach even $1 billion. This downturn has led to the closure of several high-profile projects, including crypto exchange Kraken’s NFT business and Nike-owned RTFKT.

Siu Remains Bullish on NFTs

Despite the recent failures in the NFT space, Siu remains confident about the market’s potential. He attributes the closures of certain projects to the natural cycle of business, where some companies succeed while others fail:

"That’s true for companies, too. How many fashion brands and shoe brands or gaming companies or whatever have launched products and they haven’t worked, and then they shut down. That’s life, right? So, you know, and so I think that, I don’t think we can fault them for trying."

NFTs as Status Symbols

Siu highlights the role of NFTs as status symbols, comparing them to luxury goods that convey cultural and symbolic capital. He notes that when people make money, they often spend on reputation-based investments:

"When we’ve made money, we don’t spend it on making more money — we spend it on luxury goods. Nice house to live in, a car, new clothes, nice shoes. Right? These are not investments in a classical way. You can think of them as investments in your reputation."

Siu explains that when a person’s reputation improves, they gain more opportunities:

"It’s a different type, right? If I own a Picasso, I have a reputation that’s very special," he said.

Why NFTs Will Make a Comeback

Siu believes that NFTs like Bored Apes, Pudgy Penguins, and CryptoPunks will continue to emerge as status symbols. He attributes their popularity to the fact that they convey cultural and symbolic capital:

"It’s the same with NFTs like Bored Apes, Pudgy Penguins, and CryptoPunks, which is why I believe NFTs will make a big comeback."

A Look at the NFT Market Today

While some projects have closed their doors, others continue to thrive. Siu notes that the market is still in its early stages, with many opportunities for growth:

"Even though we’ve seen some of the failures in the space, I believe that NFTs will continue to emerge as status goods. People are going to spend money on things that make them feel good about themselves."

Conclusion

Siu’s optimism about the NFT market is contagious. Despite the recent downturn, he believes that NFTs will "be even bigger" than during their peak in 2021 and 2022. As the market continues to evolve, it’s clear that NFTs are here to stay.

What Do You Think About the Future of NFTs?

Share your thoughts with us on Twitter or LinkedIn using the hashtag #NFTsWillMakeAComeback.

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