Odaily News Crypto KOL @arndxt_xo published the following analysis on the topic of "Is the NFT market dead?": BAYC's floor price once exceeded 150 ETH, but now it has fallen sharply to 11 ETH, a 90% drop in US dollar terms. Not only BAYC, the entire NFT market has basically died: daily trading volume once reached $100-200 million (sometimes even $1 billion), but now it only hovers around $5 million. The reasons why the NFT market faces the current situation are as follows: - Unsustainable use cases: The initial hype around digital art and collectibles could not maintain momentum. Although innovative, many projects lack long-term utility beyond speculation; - Liquidity crisis: The shrinking broader crypto market has hit NFTs particularly hard. As capital flows decrease, the illiquidity of NFTs has become a major liability; - Narrative shift: Market attention has shifted away from NFTs. Current trends show that people are turning to Meme coins and other narratives; - Technical limitations: Many NFTs do not store actual content on the chain, but rely on URLs or IPFS hashes. This raises concerns about long-term viability and true ownership; - Market saturation: The influx of low-quality projects and "cash grab" behavior dilutes the market space, making it more difficult for high-quality projects to stand out. Looking ahead, while the current situation is bleak, there are still some potential catalysts for recovery: - Atomic NFT: By integrating files and metadata on the chain, some key technical problems can be solved; - Utility-focused projects: NFTs that provide real utility rather than speculation may gain attention; - Integration with DeFi: NFT mortgages or fragmentation can improve liquidity; - Games and metaverse applications: These areas can bring more sustainable use cases for NFTs. It believes that NFT is a great idea, but it cannot be sustained without a lot of innovation around PFP. If the project uses new ERC NFT standards such as ERC404, it may eventually gain adoption and breakthroughs with good support or promotion. "I do hope to see the return of NFT."