The non-fungible token ($NFT) sector is facing renewed debate over its long-term relevance, with differing views emerging on whether the market has declined or is in transition. Eli Scheinman, senior advisor at Art Basel, stated that NFTs as a category are no longer returning to previous levels of activity, describing the market as effectively as in its previous form.
However, he noted that the underlying technology is still evolving, especially for use cases involving digital ownership and new forms of art and collectibles. At the same time, Raoul Pal asserted that blockchain-based art will continue to retain value, citing scarcity, cultural relevance and social consensus as key factors influencing pricing and demand in the long term.
Art is not dead.
Art about blockchain is scarce. It’s not dead either.
Art that reflects today’s culture, permanently recorded on the blockchain, is valuable.
Scarce art on blockchain that has a social consensus is invaluable.
Prices reflect this.
Not all NFTs are equal…
— Raoul Pal (@RaoulGMI) April 6, 2026
These opposing views are broader $NFT The market is showing a decline in valuations compared to the highs of 2021 and 2022. Activity has slowed and momentum in the sector has weakened, highlighted by the cancellation of the US economy $NFT Paris shortly before the planned launch.
Collectors maintain their activity despite market decline
Yat Siu, co-founder of Animoca Brands, said NFTs are still widespread among wealthy collectors. Speaking at a crypto conference in St. Moritz, he described the $NFT market maintained by a community of participants who purchase assets for ownership rather than for resale. He compared $NFT collecting into traditional markets such as fine art and luxury goods, where ownership often reflects the shared interests of collectors.
Siu stated that his personal $NFT portfolio is down about 80%, but noted that these were long-term investments.
Pudgy Penguins is expanding beyond digital collectibles
In addition, Pudgy Penguins introduced the Pengu Card, a Visa-supported crypto payment card. The card allows users to spend cryptocurrencies including $PENGUUSDC and USDT, from over 150 million merchants worldwide, with automatic conversion to local currency.
The product is offered in multiple tiers with various cashback and returns features and integrates with Apple Pay and Google Pay for contactless payments. Additionally, Pudgy Penguins has released physical collectibles that have NFC chips built into them, allowing holders to verify ownership of associated NFTs.
Related: Chubby penguins ($PENGU) Claims at top $NFT Place with 546% rally in four weeks