"The death of NFTs"—this recurring narrative over the past two years has recently resurfaced with the cancellation of NFT Paris. However, when we shift our gaze from media headlines to GitHub commits and from secondary market trading volumes to actual on-chain protocol calls, a completely different picture emerges: monthly sales remain stable at $300 million, developer activity has hit a record high, and Web3 giants like Animoca Brands are channeling resources into real-world asset tokenization. This reveals a counterintuitive truth: the NFT market is not dead; it is undergoing a silent transformation from adolescence to adulthood—from a speculative game chasing quick profits to a pragmatic endeavor focused on building lasting value. Beneath the market's apparent calm, infrastructure development and use case exploration are deepening.

Data Does Not Lie: The Silent Revolution in Trading Structure

On the surface, the decline in the total NFT market capitalization from hundreds of billions of dollars at its peak to current levels is indeed disheartening. However, behind the macro data lies the code to structural change. During the 2021–2022 bull market, trading was predominantly concentrated on profile picture (PFP) projects, whose value relied almost entirely on community narratives and speculative sentiment. Today, on-chain data reveals a more diversified landscape: gaming assets, digital identity credentials, membership passes, and tokenized representations of real-world assets (RWA) are occupying an increasingly larger share of transactions. This shift is particularly evident in trading patterns—holding periods have significantly lengthened, trading frequency has declined, but assets are more tightly bound to specific usage scenarios.
Take Dune Analytics data as an example: while trading volumes for blue-chip projects have significantly shrunk, activity on game-specific NFT marketplaces is steadily rising. More critically, the holding periods for these transactions have significantly lengthened—from days or even hours to weeks or months. This shift from "trading-oriented" to "utility-oriented" is a core indicator of market maturity. What Animoca Brands co-founder Siu refers to as "wealthy collectors still driving the market" actually points to a healthier pyramid structure: at the top are high-value digital art and collectibles, while the base consists of a vast number of utility-driven assets, together forming a complete economic ecosystem. This layered structure endows the market with resilience against speculative bubbles.

Technological Evolution: From Static Images to Programmable Assets

Behind the structural changes in the market lies a profound evolution in the NFT tech stack. Projects like CryptoKitties in 2017 and BAYC in 2021 were primarily based on the ERC-721 standard, essentially serving as sophisticated pointers storing image metadata on the blockchain. Today's NFT technological frontier has far surpassed this static model, advancing toward more dynamic and programmable directions. This technological evolution is not an incremental improvement but a fundamental paradigm shift, redefining the boundaries of possibility for digital assets.
The emergence of the ERC-6551 standard is a watershed moment. This innovation, known as the "NFT wallet standard," enables each NFT to have its own smart contract wallet. This means NFTs are no longer passive digital collectibles but can actively hold other assets—including tokens, other NFTs, and even execute complex on-chain operations. Game developers can now design character NFTs that hold weapon and armor NFTs, automatically earn token rewards upon completing tasks, and use these rewards to trade equipment on decentralized marketplaces. This composability and interactivity transform NFTs from "butterfly specimens" in a display case into "living organisms" within an active ecosystem, creating unprecedented user experiences and economic models.

Meanwhile, dynamic NFT technology is maturing. Based on on-chain or oracle data, the appearance, attributes, or rights of an NFT can change in real time. Imagine an NFT representing carbon credits, with its visual representation changing according to actual emission reductions, or an NFT representing membership, with its privilege level automatically adjusting based on participation. These technological breakthroughs are transforming NFTs from simple proofs of ownership into complex, programmable carriers of rights and interests. This shift not only expands the functional scope of NFTs but, more importantly, establishes dynamic bridges between digital assets and real-world value.

Use Case Diversification: Four Emerging Pragmatic Tracks

As technological capabilities expand, the practical use cases for NFTs are rapidly diversifying into several clear tracks. This diversification is not a fragmentation of the market but an inevitable trend of specialization during ecosystem maturation, with each track corresponding to specific user needs and technical solutions.
Gaming and Virtual Economy Assets are becoming the most active area today. 

Massive multiplayer online games are issuing key assets—land, characters, equipment, resources—as NFTs. Unlike traditional in-game items, these assets are truly owned by players, tradable on secondary markets, and even usable across games. The decline of Axie Infinity is not a failure of the gaming NFT model but paves the way for more sustainable economic designs. New-generation gaming projects are building more complex and balanced economic systems where NFTs are not just collectibles but essential tools for participating in the gaming ecosystem. Through carefully designed incentive mechanisms and scarcity management, these systems create more enduring and deeper user engagement.
Digital Identity and Reputation Systems are finding unique value in the anonymity-dominated crypto world. Verifiable, persistent identity credentials become exceptionally valuable, and NFTs are becoming the perfect container for carrying such digital identities. Educational institutions can issue verifiable degree NFTs; employers can issue skill certification NFTs; DAOs can issue contribution proof NFTs. These credentials are immutable, verifiable, and fully user-controlled, forming the cornerstone of Web3 social graphs and reputation systems. This decentralized identity layer not only addresses trust issues in traditional networks but also enables new forms of social and economic interaction.

Real-World Asset (RWA) Tokenization demonstrates the most promising development prospects. Fractional ownership of real estate, shares of artworks, authenticity proofs for luxury goods—assets traditionally illiquid or costly to verify are finding digital expression through NFTs. This tokenization not only enhances liquidity but also enables automated revenue distribution and governance through smart contracts, blurring the lines between the physical and digital worlds. Development in this field requires addressing complex challenges such as legal compliance, asset custody, and on-chain integration of real-world data, but breakthroughs here could unlock a trillion-dollar market space.

Membership and Access Control are redefining permission management methods. From private clubs to software subscription services, NFTs are changing how access rights are issued and managed. Holding specific NFTs can unlock exclusive content, event tickets, product discounts, or community voting rights. This model creates a more direct and programmable creator-fan economic relationship while offering holders potential avenues for value appreciation. This ownership-based, rather than subscription-based, access model is giving rise to new community forms and business paradigms.

Implications for Builders: Tech Stack Choices in the New Era

For developers currently building or planning to build NFT projects, this transition period presents both challenges and opportunities. The choice of tech stack will directly impact a project's long-term viability, and the current technological ecosystem offers richer and more mature options than ever before. Developers need to make prudent and forward-looking technical decisions based on their project's specific needs and long-term vision.
Standard Selection becomes a core consideration in architectural design. While ERC-721 remains foundational, standards like ERC-1155 (suitable for batch minting gaming assets) and ERC-6551 (suitable for complex composable assets) should be considered from the initial design phase. Choosing the right standard can significantly affect future functionality expansion and user experience, determining the project's technical ceiling. Developers need to deeply understand the design philosophy and applicable scenarios of each standard, rather than simply following trends.

Chain and Layer Selection directly relates to user experience and operational costs. The security and network effects of the Ethereum mainnet remain irreplaceable, but for high-frequency, low-value gaming assets, Layer 2 solutions offer better user experience and cost structures. Cross-chain interoperability should also be part of the long-term roadmap, considering the development trend of future multi-chain ecosystems. Developers need to find a balance between security, cost, and ecosystem richness that suits their project.

Storage Strategy determines the persistence and accessibility of assets. Fully on-chain storage of NFT metadata and media, though costly, offers true permanence and censorship resistance. For high-value artworks or critical identity credentials, this may be a worthwhile investment. For most use cases, decentralized storage solutions offer a good balance. Storage decisions require comprehensive consideration of cost, performance, and long-term reliability, especially as data volumes continuously grow.

Economic Model Design becomes the key differentiator between sustainable projects and short-term hype. Perhaps the most important shift is from "how to create scarcity to drive up prices" to "how to design utility to create lasting demand." Sustainable NFT projects should think like designing a micro-economy: How are assets created? How do they flow between users? How can excessive inflation or deflation be prevented? How does utility value accumulate over time? The answers to these questions will determine whether a project can survive market cycles.

The Vast Landscape After the Coming of Age

The cancellation of NFT Paris may mark the end of an era—an era where NFTs were primarily status symbols on social media and speculative tools. However, this does not mean the end of NFTs themselves; rather, it may signify the beginning of a necessary coming of age. As the market noise gradually subsides, genuine value creators gain a larger stage and clearer vision.

As the market weeds out projects relying solely on FOMO and empty promises, space is cleared for genuinely valuable constructions. From Animoca Brands pivoting to RWA tokenization, to developers exploring the possibilities of ERC-6551, to wealthy collectors viewing NFTs as long-term digital art holdings, these seemingly disparate phenomena point in the same direction: NFTs are moving from the cultural fringe to the center of mainstream applications. This transformation is not a sudden revolution but a gradual evolution requiring the synergistic development of technology, market, and society.

Future NFTs will appear less frequently in panicky financial news headlines and more often in players' game inventories, creators' membership programs, and corporate supply chain management systems. Their value will no longer derive solely from what the next buyer is willing to pay but from what functions they enable, what rights they represent, and what communities they connect. This shift in the foundation of value will fundamentally change the dynamics of the NFT market and the behavioral patterns of participants.

This silent transformation may not generate headlines like those in 2021, but it is laying the foundation for a more solid, diverse, and useful digital asset economy. For true builders, when the noise subsides, it is time to start building seriously. Projects that can grasp technological trends, understand user needs, and design sustainable economic models during this transition period will occupy leading positions in the next cycle, driving the entire industry toward greater maturity and usefulness.

"The death of NFTs"—this recurring narrative over the past two years has recently resurfaced with the cancellation of NFT Paris. However, when we shift our gaze from media headlines to GitHub commits and from secondary market trading volumes to actual on-chain protocol calls, a completely different picture emerges: monthly sales remain stable at $300 million, developer activity has hit a record high, and Web3 giants like Animoca Brands are channeling resources into real-world asset tokenization. This reveals a counterintuitive truth: the NFT market is not dead; it is undergoing a silent transformation from adolescence to adulthood—from a speculative game chasing quick profits to a pragmatic endeavor focused on building lasting value. Beneath the market's apparent calm, infrastructure development and use case exploration are deepening.

Data Does Not Lie: The Silent Revolution in Trading Structure

On the surface, the decline in the total NFT market capitalization from hundreds of billions of dollars at its peak to current levels is indeed disheartening. However, behind the macro data lies the code to structural change. During the 2021–2022 bull market, trading was predominantly concentrated on profile picture (PFP) projects, whose value relied almost entirely on community narratives and speculative sentiment. Today, on-chain data reveals a more diversified landscape: gaming assets, digital identity credentials, membership passes, and tokenized representations of real-world assets (RWA) are occupying an increasingly larger share of transactions. This shift is particularly evident in trading patterns—holding periods have significantly lengthened, trading frequency has declined, but assets are more tightly bound to specific usage scenarios.
Take Dune Analytics data as an example: while trading volumes for blue-chip projects have significantly shrunk, activity on game-specific NFT marketplaces is steadily rising. More critically, the holding periods for these transactions have significantly lengthened—from days or even hours to weeks or months. This shift from "trading-oriented" to "utility-oriented" is a core indicator of market maturity. What Animoca Brands co-founder Siu refers to as "wealthy collectors still driving the market" actually points to a healthier pyramid structure: at the top are high-value digital art and collectibles, while the base consists of a vast number of utility-driven assets, together forming a complete economic ecosystem. This layered structure endows the market with resilience against speculative bubbles.

Technological Evolution: From Static Images to Programmable Assets

Behind the structural changes in the market lies a profound evolution in the NFT tech stack. Projects like CryptoKitties in 2017 and BAYC in 2021 were primarily based on the ERC-721 standard, essentially serving as sophisticated pointers storing image metadata on the blockchain. Today's NFT technological frontier has far surpassed this static model, advancing toward more dynamic and programmable directions. This technological evolution is not an incremental improvement but a fundamental paradigm shift, redefining the boundaries of possibility for digital assets.
The emergence of the ERC-6551 standard is a watershed moment. This innovation, known as the "NFT wallet standard," enables each NFT to have its own smart contract wallet. This means NFTs are no longer passive digital collectibles but can actively hold other assets—including tokens, other NFTs, and even execute complex on-chain operations. Game developers can now design character NFTs that hold weapon and armor NFTs, automatically earn token rewards upon completing tasks, and use these rewards to trade equipment on decentralized marketplaces. This composability and interactivity transform NFTs from "butterfly specimens" in a display case into "living organisms" within an active ecosystem, creating unprecedented user experiences and economic models.

Meanwhile, dynamic NFT technology is maturing. Based on on-chain or oracle data, the appearance, attributes, or rights of an NFT can change in real time. Imagine an NFT representing carbon credits, with its visual representation changing according to actual emission reductions, or an NFT representing membership, with its privilege level automatically adjusting based on participation. These technological breakthroughs are transforming NFTs from simple proofs of ownership into complex, programmable carriers of rights and interests. This shift not only expands the functional scope of NFTs but, more importantly, establishes dynamic bridges between digital assets and real-world value.

Use Case Diversification: Four Emerging Pragmatic Tracks

As technological capabilities expand, the practical use cases for NFTs are rapidly diversifying into several clear tracks. This diversification is not a fragmentation of the market but an inevitable trend of specialization during ecosystem maturation, with each track corresponding to specific user needs and technical solutions.
Gaming and Virtual Economy Assets are becoming the most active area today. 

Massive multiplayer online games are issuing key assets—land, characters, equipment, resources—as NFTs. Unlike traditional in-game items, these assets are truly owned by players, tradable on secondary markets, and even usable across games. The decline of Axie Infinity is not a failure of the gaming NFT model but paves the way for more sustainable economic designs. New-generation gaming projects are building more complex and balanced economic systems where NFTs are not just collectibles but essential tools for participating in the gaming ecosystem. Through carefully designed incentive mechanisms and scarcity management, these systems create more enduring and deeper user engagement.
Digital Identity and Reputation Systems are finding unique value in the anonymity-dominated crypto world. Verifiable, persistent identity credentials become exceptionally valuable, and NFTs are becoming the perfect container for carrying such digital identities. Educational institutions can issue verifiable degree NFTs; employers can issue skill certification NFTs; DAOs can issue contribution proof NFTs. These credentials are immutable, verifiable, and fully user-controlled, forming the cornerstone of Web3 social graphs and reputation systems. This decentralized identity layer not only addresses trust issues in traditional networks but also enables new forms of social and economic interaction.

Real-World Asset (RWA) Tokenization demonstrates the most promising development prospects. Fractional ownership of real estate, shares of artworks, authenticity proofs for luxury goods—assets traditionally illiquid or costly to verify are finding digital expression through NFTs. This tokenization not only enhances liquidity but also enables automated revenue distribution and governance through smart contracts, blurring the lines between the physical and digital worlds. Development in this field requires addressing complex challenges such as legal compliance, asset custody, and on-chain integration of real-world data, but breakthroughs here could unlock a trillion-dollar market space.

Membership and Access Control are redefining permission management methods. From private clubs to software subscription services, NFTs are changing how access rights are issued and managed. Holding specific NFTs can unlock exclusive content, event tickets, product discounts, or community voting rights. This model creates a more direct and programmable creator-fan economic relationship while offering holders potential avenues for value appreciation. This ownership-based, rather than subscription-based, access model is giving rise to new community forms and business paradigms.

Implications for Builders: Tech Stack Choices in the New Era

For developers currently building or planning to build NFT projects, this transition period presents both challenges and opportunities. The choice of tech stack will directly impact a project's long-term viability, and the current technological ecosystem offers richer and more mature options than ever before. Developers need to make prudent and forward-looking technical decisions based on their project's specific needs and long-term vision.
Standard Selection becomes a core consideration in architectural design. While ERC-721 remains foundational, standards like ERC-1155 (suitable for batch minting gaming assets) and ERC-6551 (suitable for complex composable assets) should be considered from the initial design phase. Choosing the right standard can significantly affect future functionality expansion and user experience, determining the project's technical ceiling. Developers need to deeply understand the design philosophy and applicable scenarios of each standard, rather than simply following trends.

Chain and Layer Selection directly relates to user experience and operational costs. The security and network effects of the Ethereum mainnet remain irreplaceable, but for high-frequency, low-value gaming assets, Layer 2 solutions offer better user experience and cost structures. Cross-chain interoperability should also be part of the long-term roadmap, considering the development trend of future multi-chain ecosystems. Developers need to find a balance between security, cost, and ecosystem richness that suits their project.

Storage Strategy determines the persistence and accessibility of assets. Fully on-chain storage of NFT metadata and media, though costly, offers true permanence and censorship resistance. For high-value artworks or critical identity credentials, this may be a worthwhile investment. For most use cases, decentralized storage solutions offer a good balance. Storage decisions require comprehensive consideration of cost, performance, and long-term reliability, especially as data volumes continuously grow.

Economic Model Design becomes the key differentiator between sustainable projects and short-term hype. Perhaps the most important shift is from "how to create scarcity to drive up prices" to "how to design utility to create lasting demand." Sustainable NFT projects should think like designing a micro-economy: How are assets created? How do they flow between users? How can excessive inflation or deflation be prevented? How does utility value accumulate over time? The answers to these questions will determine whether a project can survive market cycles.

The Vast Landscape After the Coming of Age

The cancellation of NFT Paris may mark the end of an era—an era where NFTs were primarily status symbols on social media and speculative tools. However, this does not mean the end of NFTs themselves; rather, it may signify the beginning of a necessary coming of age. As the market noise gradually subsides, genuine value creators gain a larger stage and clearer vision.

As the market weeds out projects relying solely on FOMO and empty promises, space is cleared for genuinely valuable constructions. From Animoca Brands pivoting to RWA tokenization, to developers exploring the possibilities of ERC-6551, to wealthy collectors viewing NFTs as long-term digital art holdings, these seemingly disparate phenomena point in the same direction: NFTs are moving from the cultural fringe to the center of mainstream applications. This transformation is not a sudden revolution but a gradual evolution requiring the synergistic development of technology, market, and society.

Future NFTs will appear less frequently in panicky financial news headlines and more often in players' game inventories, creators' membership programs, and corporate supply chain management systems. Their value will no longer derive solely from what the next buyer is willing to pay but from what functions they enable, what rights they represent, and what communities they connect. This shift in the foundation of value will fundamentally change the dynamics of the NFT market and the behavioral patterns of participants.

This silent transformation may not generate headlines like those in 2021, but it is laying the foundation for a more solid, diverse, and useful digital asset economy. For true builders, when the noise subsides, it is time to start building seriously. Projects that can grasp technological trends, understand user needs, and design sustainable economic models during this transition period will occupy leading positions in the next cycle, driving the entire industry toward greater maturity and usefulness.