Assets

Opinion by: Charu Sethi, president of Unique Network 

Some argue that NFTs are dead. Others are holding out for the speculative art boom to return with the next market cycle. Both assumptions miss the reality. NFTs are neither obsolete nor poised for another speculative hype wave. What’s unfolding instead is likely the most important phase in their evolution: where NFTs are transitioning into core digital infrastructure underpinning gaming, AI and machine-driven applications.

The market has evolved

There are clear signs that NFT utility is replacing speculation, and the trend is holding. According to DappRadar, in Q1 2025, NFT trading volume dropped 24%, but sales declined only by 10%, pointing to lower average prices rather than user exit. AI and social DApps — with the potential to leverage NFTs for agent identity, assets, credentials and access — grew sharply in Q1, and utility categories like real-world assets (RWAs), domain NFTs and metaverse assets showed sustained traction. 

In gaming, platforms like Mythical and The Sandbox continue to grow, where in-game assets provide real, functional value. While there is still a vision and demand for interoperable NFTs, there are also examples where they are being delivered for developers and end-users.

NFTs in the agentic AI era

NFTs were originally conceived to enable verifiable digital ownership, identity and programmable rights — not speculative trading. It was meant to give people ownership of their digital lives. Be it their identity, health records, social media content or creative work — NFTs offered a way to prove ownership. That vision was foundational to the broader Web3 movement.

This foundational vision was obscured by the rise of memecoins and short-term financial hype, distorting public perception of NFTs and Web3. This core utility resurfaces as the agentic AI era emerges, where code meets cognition. Autonomous AI agents now require self-sovereign identity, memory and access control to operate effectively onchain.

With AI frameworks maturing, NFTs are becoming embedded as infrastructure. They function as identity anchors, verifiable data containers and access credentials for agents acting across decentralized environments. An NFT-bound agent can independently access services, sign transactions, and trigger contract logic — its authority validated by the NFT. This transforms NFTs into operational components that persist across contexts.

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This utility is already in production. ReinforcedAI’s subnet on Bittensor issues NFTs as proof of completed Solidity audits, enabling encrypted validator review and decentralized reward mechanisms. Similarly, NFTs are used to certify input-output processes across AI pipelines. In parallel, projects like Peaq use “machine NFTs” to give devices like vehicles and drones identity and autonomy to transact. As AI agents integrate further into Web3 systems, NFTs will underpin workflows ranging from personal AI wallets to non-fungible autonomous agents.

UX-driven wallets and mainstream entry

The growth of social wallets is another driver. Instead of complex key management, users onboard through email or social login, and their profile pics, memberships and credentials (silently NFTs) display as part of their Web3 identity. Over 50% of users aged 18-34 already use social wallets regularly, especially in gaming and community apps.

These wallets prioritize user experience and easily embed NFTs into familiar interfaces. In social gaming platforms, for example, players may not even realize their avatars, emotes or achievements are NFTs. Yet these assets are portable, tradable and interoperable — acting as the connective tissue across platforms. There are significant lessons learned about how true ownership and great UX are critical for SocialFi apps to succeed.

NFTs as invisible infrastructure

NFTs are not disappearing — they are becoming core infrastructure, functioning as the underlying layer for asset ownership, transactional logic and autonomous agent behavior in decentralized systems. They support player-owned economies in gaming, serve as identity and credential containers for AI agents, and enable payments and access rights in machine-to-machine networks. This reflects a broader architectural shift from front-end collectibles to back-end components embedded in wallets, SDKs and protocols. NFTs now power access control, data provenance and interoperability, redefining their role from visible assets to essential system primitives.

Waiting for the return of the speculative NFT boom as a measure of success is misguided — real progress is unfolding at the infrastructure layer, where NFTs are quietly becoming essential.

Opinion by: Charu Sethi, president of Unique Network.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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