The non-fungible token ($NFT) sector is facing renewed debate over its long-term relevance, with different views emerging on whether the market has declined or is transitioning. Eli Scheinman, senior advisor at Art Basel, stated that NFTs, as a category, are no longer returning to prior levels of activity, describing the market as effectively over in its earlier form.
However, he noted that the underlying technology is still under development, particularly for use cases involving digital ownership and new forms of art and collectibles. At the same time, Raoul Pal claimed that blockchain-based art continues to hold value, citing scarcity, cultural relevance, and social consensus as key factors that influence pricing and long-term demand.
Art is not dead.
Art on blockchain is scarce. It is also not dead.
Art that reflects the culture of today, permanently recorded on the blockchain is valuable.
Scarce art on blockchain that has social consensus is priceless.
Prices reflect this.
Not all NFTs have equal…
— Raoul Pal (@RaoulGMI) April 6, 2026
These opposing views come as the broader $NFT market shows a decline in valuations compared to 2021 and 2022 highs. Activity has slowed, and industry momentum has weakened, highlighted by the cancellation of $NFT Paris shortly before its scheduled launch.
Collectors Maintain Activity Despite Market Decline
Yat Siu, co-founder of Animoca Brands, said that NFTs are still widely held among wealthy collectors. Speaking at a crypto conference in St. Moritz, he described the $NFT market as sustained by a community of participants who purchase assets for ownership rather than resale. He compared $NFT collecting to traditional markets such as fine art and luxury goods, where ownership often reflects shared interests among collectors.
Siu stated that his personal $NFT portfolio has declined by approximately 80% but noted that these were long-term holdings.
Pudgy Penguins Expands Beyond Digital Collectibles
Separately, Pudgy Penguins introduced the Pengu Card, a Visa-backed crypto debit card. The card allows users to spend cryptocurrencies, including $PENGU, USDC, and USDT, at more than 150 million merchants worldwide, with automatic conversion to local currency.
The product is offered in multiple tiers with varying cashback and yield features and integrates with Apple Pay and Google Pay for contactless payments. In addition, Pudgy Penguins released physical collectibles embedded with NFC chips, enabling holders to verify ownership of associated NFTs.
Related: Pudgy Penguins ($PENGU) Claims Top $NFT Spot With 546% Rally in Four Weeks
