The NFT market is silently becoming infrastructure
Despite some arguing that NFTs are dead, they are actually transitioning into essential digital infrastructure, particularly for gaming, AI, and machine-driven applications. In Q1 2025, NFT trading volume dropped by 24%, but sales declined only by 10%, suggesting a focus on utility rather than speculation. NFTs are increasingly being used in various sectors such as AI and decentralized applications, where they serve roles like identity verification and access control. Examples include ReinforcedAI’s use of NFTs for proofs of audit completion and projects like Peaq employing machine NFTs for devices to transact independently. The growth of social wallets, which simplify user onboarding through social logins and integrate NFTs, is further driving adoption. NFTs are evolving from visible collectibles to invisible infrastructure, underpinning asset ownership and agent behavior in decentralized systems, emphasizing a shift from speculation to critical applications in various technological fields.
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