The current state of the NFT market is a bear market. He views it as a complete change in focus, not a complete implosion. The NFT market experienced tremendous growth in 2021. Yet, in recent data, we are seeing a drastic drop off. Trading volumes have plummeted and countless projects are going out of business. Salnikov counters that this correction is just a natural step in the technology’s evolution. He advocates for utility and genuine community involvement instead of building for speculative hype. He underscores Rarible’s mission of delivering users valuable experiences fueled by blockchain technology as an example.

The Rise and Fall of the NFT Market

The NFT market went on a meteoric rise throughout 2021, dominating headlines and capturing the interest of celebrities and everyday internet users alike. Stars and influencers like Justin Bieber, Madonna and Neymar got in on the action themselves, creating more buzz, expectation and investment. The market has experienced a deep correction ever since. No other year has pushed our creators more than 2024. At the same time, a research project found that 98% of NFT projects released that year were effectively “dead.”

The NFT bubble has undoubtedly burst. The pool of available active traders is drying up by the day, and trading volumes are plummeting. Demand for support skyrocketed, as the number of active traders peaked at 529,101 in 2022. By the first quarter of 2025, that figure dropped off a cliff—falling 96% to just 19,575. The change in the market was further reflected by a drop in trading volume down to $23.8 million during Q1 2025. This marks an incredible 93% drop from its highs. Currently, some of the world’s largest NFT platforms, such as Bybit, X2Y2, and even Kraken have shut down their NFT services because of trading volume dryness.

The speculative nature of many NFT projects and the broader crypto market has fueled a boom and bust cycle in these markets. From this perspective, celebrity involvement does seem like a short-term boon. For instance, Justin Bieber spent 500 ETH (approximately $1.3 million at the time) on Bored Ape #3001 in January 2022, but such high-profile purchases have not sustained the market's growth.

Focusing on Utility and Community

Alexander Salnikov believes that the key to the NFT market's long-term success lies in providing genuine utility and fostering strong community engagement. Similar to koalas, he claims that when NFTs are treated as just speculative commodities, trust vanishes at an alarming rate, heralding sudden market collapse.

"NFTs are the feature—they just need the right framing." - Alexander Salnikov

Salnikov is quick to refocus the conversation, stressing that Rarible’s goal is to power experiences that are just onchain, not selling NFTs. Some of Rarible’s notable features are white-label fiat onramps, low-cost mints, a smooth user interface—and quite frankly, Rarible has content that vibes with their users.

"We're not selling NFTs—we're powering experiences that just happen to be onchain." - Alexander Salnikov

Rarible’s ambition is to inject genuine utility into the NFT market. This not only demystifies blockchain technology but lays the groundwork for an informed user base ready to explore its vast potential. This philosophy stands in sharp relief to projects that focus on hype and speculation, which tend to deflate and provide zero long-term value.

The Future of NFTs

It shows that NFT market is maturing,” — Alexander Salnikov on picture on NFTs market. It’s moving beyond the speculative hype to serious real world applications. The way he sees it, the next wave of growth will come from unlocking new kinds of ownership. Both of these opportunities will appeal to the internet generation and seem organic to their experiences. Embracing this new paradigm means ignoring the impulse to build to the flavor of the day and instead thinking long-term.

"Celebrity drops will come and go—it’s the culture behind them that determines if they stick." - Alexander Salnikov

Salnikov notes that celebrity participation in the NFT space is often short-lived. Real sustainability, he argues, comes from creating great places and providing enduring benefits.

"We're way more interested in working with creators who are building for the long haul than just chasing headlines." - Alexander Salnikov

Rarible’s approach mirrors this forward-looking perspective, taking a long-term approach to making NFT commerce a part of the communities they serve.

"We're not trying to bolt on non-NFT features just to stay busy—we’re building NFT commerce that actually fits the communities using it." - Alexander Salnikov