NFTs Thrive Despite Trading Volume Decline, OpenSea CEO Says

In 2025, despite the widespread belief that NFTs are a fading trend, several collectives such as Azuki, Pudgy Penguins, and Claynosaurz continue to thrive. These projects, each with unique goals and communities, share a common dedication to digital art ownership. For instance, Azuki aims to honor anime's cultural legacy, while Pudgy Penguins focuses on creating a consumer brand with merchandise and a viral presence on platforms like TikTok. Remilia, on the other hand, advances a political-cultural movement known as "network spirituality."

One of the key figures in this ongoing NFT ecosystem is a 23-year-old man known as "0xExceed," who manages his NFT project from his apartment in Asia. Alongside his co-founders, he coordinates with artists across multiple time zones and engages with a community of thousands. This dedication is not isolated; many creators and collectors remain passionate about NFTs, despite the significant decline in trading volumes from their 2021 peak.

Devin Finzer, CEO and co-founder of OpenSea, the world's largest NFT marketplace, sees this evolution as a natural progression. He believes that the rise of AI and the ease of creating content and software applications are driving the evolution of NFTs. Finzer explains that the decline in NFT trading volumes can be attributed to the rise of meme coins, which offer more liquidity and ease of trading. Many successful NFT projects have adapted by incorporating their own ecosystem tokens, creating hybrid models that blend community aspects with liquidity.

OpenSea's journey illustrates the volatility in the NFT marketplace. Its market share plummeted from over 70% in 2021 to as low as 15% in 2022, before rebounding to 58% following platform upgrades and ecosystem token announcements. Finzer also notes that NFTs have become more affordable, with faster and more inexpensive chains enabling a healthier ecosystem. For example, the average sale price of top NFT collections has significantly decreased, making it more accessible for a broader audience.

The regulatory environment for NFTs and crypto has also improved, with recent rulings and political changes ending many investigations of crypto companies. This has encouraged smaller creators to participate more actively in the ecosystem. Additionally, the landmark court ruling between Apple and Epic Games is set to transform NFT accessibility on mobile platforms by ending Apple's monopoly on in-app payments. This ruling will allow users to purchase NFTs directly through iOS apps without prohibitive fees, making it easier for consumers to access NFT experiences on mobile devices.

One of the most compelling aspects of NFTs is their role in establishing digital identity and community membership. This was evident when Ethereum co-founder Vitalik Buterin changed his profile picture to Remilia Corporation’s Milady NFT, causing a significant market reaction. Finzer observes that owning a digital asset and setting it as a profile picture demonstrates community membership and a mindset shift. Projects like Pudgy Penguins and Azuki have evolved into full-blown consumer brands and storytelling platforms, respectively, showcasing the versatility and cultural significance of NFTs.

Finzer views the current state of NFTs as part of a natural technology cycle, where initial excitement gives way to a period of infrastructure building and innovation. He sees NFTs as part of a broader digital ownership layer that will be essential as more of our lives move online. OpenSea has expanded from being just an NFT marketplace to a platform where users can discover, own, and trade anything on chain, highlighting the platform’s evolution beyond its original focus.