- The NFT trading volume has fallen 93% since it peaked in 2021, but Alex Salnikov, the co-founder of Rarible, believes that people are shifting to the ‘use-case.’
- Salnikov noted NFTs are gradually turning into community tools for promotions, fan engagement, and identity.
- Data shows NFT transactions declined 93% as of Q1 of 2025.
The non-fungible token (NFT) sector has undergone a major transformation. Although trade volume and active participants have gone down significantly, many industry leaders argue that this market is not fading but just transforming.
According ot DappRadar data, NFT transactions declined to $23.8 million in Q1 of 2025, which is 93% down from the $2.9 billion recorded in 2021. It has decreased to 19,575 from 529,101 in 2022, which shows a 96% reduction in the active trading population. The report also revealed that 2024 was one of the worst indices in the tone of the unprecedented 2020 boom.
However, Rarible co-founder Alexander Salnikov sees the change as essential. He compared it to post dot com backlash, where markets tend to bubble before innovation sets in. Salnikov less speculatively pointed out that the NFT sector is transitioning to a new phase of valuable use on the horizon.
NFTs Find New Purpose in Digital Infrastructure
Salnikov suggests that NFTs have evolved from switching pictures to serve a higher purpose. They are gradually evolving into a means for content creators and brands to build a community and generate revenue streams. He cited gaming identity, brand loyalty programs, and membership access as some of the promising areas for this use.
In support of this, Binance Research in April 2025 provided examples of several real-adjusted partnerships. Some of them include Azuki’s physical collaboration with Michael Lau and The Sandbox’s cooperation with Jurassic World. The company’s Soneium project with LINE and EGGRYPTO’s anime project also shows how NFTs are growing beyond art.
Salnikov also pointed out that the concept is moving towards differentiated, locally driven platforms. Rather than seeking to mimic current fads, Rarible is building individual platforms that capture an audience for each creator. They provide fiat gateways, low-cost entering, and easy-to-use interfaces to minimize entry barriers.
In his words, “NFTs are the feature—they just need the right framing.” According to Salnik, the key to success is the attempt to incorporate NFT into the experiences customers already crave instead of offering NFTs as simply as products.
Celebrity Hype Fades as Projects Seek Meaningful Engagement
During the NFT frenzy, celebrities like Justin Bieber and Madonna drew attention with big-ticket purchases. But that hype has been short-lived. For example, Bieber bought a Bored Ape NFT for $1.3 million, and this particular NFT is now valued at over $24,000.
Salnikov dismissed celebrity-led campaigns that are not authentic. He said that shallow endorsements do not fortify the community. “Celebrity drops will come and go—it’s the culture behind them that determines if they stick,” he said.
Rarible now values the long-term creative partnership over a single moment in the spotlight. The application is set on genuine artists who transform music, fashion, or interact with digital fandom through NFTs not just to gain attention. According to Salnikov, the user experience needs to change for the NFT sector to grow. Platforms should be natural, appropriate, and in tune with the current usage of the internet and available technologies.
