The No-Man's Land of NFTs: The Cold Truth Behind the Price Rebound in 2026

Entering 2026, the long-dormant NFT market suddenly stirs with ripples. According to CoinGecko data, this week the overall market capitalization of NFTs increased by over $220 million, with more than a hundred projects recording positive growth, and some even experiencing triple-digit gains. However, this “recovery” occurs in a forgotten no-man’s land—a once bustling market now deserted, with only old players trapped inside.

This long-awaited green market indeed offers some solace to steadfast holders, but peeling back the curtain on the price surge reveals a more sobering truth. The market’s warming is not driven by new capital inflows but by the last gambles of existing funds in extremely scarce liquidity conditions.

Market Warmth Illusion: The Final Gamble of Existing Capital

Data exposes the stark reality behind this rebound. Among over 1,700 NFT projects, only 6 have weekly trading volumes exceeding one million USD, 14 projects are in the hundreds of thousands USD range, and just 72 are in the tens of thousands USD range. Even top-tier projects have only a small percentage of their total supply actively traded weekly, with most assets seeing zero trading volume.

According to The Block’s 2025 report, total NFT trading volume for the year was only $5.5 billion, down 37% from 2024; total market cap plummeted from $9 billion to $2.4 billion. These figures declare a brutal fact—the NFT space has become an “old asset,” with no new capital entering.

Most digital collectibles once sold for sky-high prices now lie dormant in exchanges and cold wallets, neglected. The top event NFT Paris was quietly discontinued due to funding shortages. In this forgotten no-man’s land, only a few persistent or trapped investors continue to watch anxiously.

During consecutive years of decline, “NFTs are dead” has become a market consensus. This price rebound is merely the last ripple in dead water.

Capital Exodus: From Virtual Assets Back to Real-World Collectibles

The decline of NFTs does not mean the disappearance of collecting and speculative demand; rather, these demands are collectively fleeing the no-man’s land, rushing toward new battlegrounds.

Starting from the top, the collapse is evident. Leading trading platform OpenSea has long shifted focus from virtual images to incentivizing token trading through airdrops; the once-mainstream NFT chain Flow has turned toward DeFi exploration; Zora abandoned traditional NFT models, moving toward a “content as token” narrative. The decisive exit of Web2 giants is symbolic—Reddit has ceased NFT services, Nike has cleared its RTFKT holdings.

Yet even top projects cannot escape the whirlpool of difficulties. Pudgy Penguins successfully built IP recognition in the real world, with hot physical toy sales, but still cannot escape the curse of declining on-chain floor prices. Brand influence failed to translate into a price moat—that’s the most ironic failure.

Where is the capital flowing? The answer: back to reality. Compared to virtual collectibles, physical markets like Pokémon TCG have transaction volumes exceeding $1 billion; crypto elites are also voting with their feet, returning to tangible assets. Artist Beeple has shifted toward physical robot creations; Wintermute co-founder Yoann Turpin invested $5 million in dinosaur fossils; Animoca Brands founder Yat Siu spent $9 million on a Stradivarius violin.

This is a collective escape—from the no-man’s land of NFTs to assets with clear value support. Ordinary investors must face this reality: liquidity is dead, and illusions are shattered.

Breaking Through the No-Man’s Land: Practical NFTs Become the New Favorite

After deep adjustments, the market has not completely cooled but has shifted toward assets with practical value or clear expectations. These NFTs are becoming bridges connecting the no-man’s land to the new world.

Short-term speculation and arbitrage: Some investors believe the market has bottomed out, engaging in swing trading by capturing price mismatches. These activities offer high risk-reward ratios but also carry significant risks.

“Shovel” attributes: These NFTs are no longer collectibles but financial certificates for obtaining future airdrops or whitelist privileges. Once snapshots are taken or airdrops distributed, if the project does not provide new utility, floor prices often collapse rapidly. Therefore, they are more suitable as short-term arbitrage tools.

Celebrity and top project endorsements: Driven by attention economy premiums. After HyperLiquid airdropped Hypurr NFTs to early users, prices soared; Vitalik Buterin changed his avatar to a Milady NFT, and its floor price rose significantly. The value of such assets derives from community consensus and hype effects.

Long-term value of top IPs: These have moved beyond hype and are driven by cultural recognition and collectible value. CryptoPunks, included in the permanent collection of the Museum of Modern Art (MoMA) in New York, exemplify this—relatively resistant to price drops and suitable for long-term storage.

Revaluation of acquisition narratives: When projects are acquired by stronger investors, the market re-prices accordingly. Pudgy Penguins and Moonbirds saw significant price increases after acquisition, as the market expects their IP monetization potential to greatly improve.

On-chain real-world assets: This is the most promising new direction. Platforms like Collector Crypt and Courtyard allow users to trade ownership of physical items like cards on-chain, with physical custody managed by the platform. Virtual assets gain tangible value support, greatly enhancing liquidity and market reach.

Return of practical functions: NFTs as tools rather than collectibles—ticketing, DAO voting rights, AI on-chain identities (such as Ethereum ERC-8004-based NFT AI agent identities), etc.

Compared to chasing meaningless virtual images, NFTs with actual utility or clear upward expectations are gradually becoming the new focus of capital. This marks the beginning of the market’s exit from the no-man’s land.

The price rebound in early 2026 may signal a certain segmentation in the NFT market—speculative assets lacking narrative will continue to be dormant, but those with practical value, IP recognition, and real-world asset backing may find opportunities for revaluation in the new cycle. The no-man’s land still exists, but the path to the exit is being paved.