Can NFTs Deliver Real Returns in 2024? What Experts Actually Think

For years, non-fungible tokens captured headlines and wallets alike. These blockchain-recorded digital assets — representing everything from art to collectibles — experienced a meteoric rise around 2021. The numbers were eye-watering: Christie’s auctioned Beeple’s digital collage for $69.34 million, while Sotheby’s sold 202 pieces from the Bored Ape Yacht Club for $26.2 million. But the party ended abruptly.

The Market Collapse Nobody Saw Coming

The crash was as dramatic as the boom. NFT trading volumes plummeted 97% from January 2022’s $17 billion peak by September 2022. For months after, the sector seemed genuinely dead. Yet whispers of recovery emerged in March 2024 when CryptoPunk 3100 fetched $16 million (4,500 ETH), sparking speculation about whether NFTs might be staging a comeback.

The question now isn’t whether NFTs can recover — it’s whether today’s market is fundamentally different from 2021’s speculative frenzy.

The Split Among Experts: Three Competing Views

The Optimists: Utility Over Hype

Some industry voices see genuine potential. Anthony Georgiades, a general partner at an investment firm, acknowledges the previous “boom-bust hype cycle” but argues that quality collections have survived and could persist. “People enjoy digital art,” he notes, suggesting this niche will maintain relevance.

More importantly, proponents emphasize utility expansion. NFTs are moving beyond profile pictures and collectibles into gaming, real estate, and digital identity verification. Lani Dizon, co-founder of a blockchain capital firm, highlights these practical applications as the foundation for sustainable investment opportunities.

Shiti Manghani, who leads an NFT gaming application, reinforces this view: genuine value derives from utility, not price speculation. His advice to investors is straightforward — invest based on the underlying use case, not FOMO-driven trading.

The case for NFTs at this moment rests on several advantages: diverse applications across industries, verifiable ownership proof, and improved accessibility through better platforms. These factors suggest NFTs have evolved into something more functional than 2021’s speculative bubble.

The Skeptics: A Limited Comeback

Other experts see only a partial recovery. Ilya Stadnik, CEO of a blockchain platform, flatly states the 2021 flood of low-value images won’t return. He’s more pragmatic than dismissive — selective NFTs could work as investments, but requires rigorous screening.

His assessment is brutal on most projects: “99.9% aren’t worth considering.” Yet he acknowledges new technologies offer promise for gaming and entertainment integration. The implication is clear — NFTs aren’t finished, but most projects are.

The Skeptics Part Two: Never a Real Investment

A third camp questions whether NFTs were ever genuinely investable at all. Professor Robert R. Johnson distinguishes between speculation and investing, arguing most NFT participants engaged in pure speculation rather than fundamental analysis.

His distinction matters: speculators can profit, but they absorb massive risk. GameStop and other meme stocks follow the same pattern. Without underlying cash flows or intrinsic value metrics, NFTs remain vehicles for traders rather than investors.

The Cons Still Linger

Whatever the optimists argue, legitimate concerns persist. NFTs remain highly volatile. Liquidity issues complicate entry and exit strategies. Legal ambiguity around ownership, utility, and regulation creates structural uncertainty.

Compare this to traditional investments where regulatory frameworks and valuation metrics provide guardrails. NFTs operate in grayer territory.

The Real Question for 2024

The NFT market in 2024 isn’t making a triumphant return to 2021 valuations. Instead, it’s splintering into genuine use cases (gaming, identity, domain names) and continued speculation (art, collectibles). Investors need to be ruthlessly honest about which they’re actually doing.

Are any NFTs still valuable? Absolutely — but separating the few with real utility from the 99% of noise requires expertise most retail investors lack. The comeback narrative isn’t about markets exploding; it’s about boring infrastructure quietly proving itself in specific sectors.

The 2024 NFT story is less “NFTs are back” and more “NFTs found their niche.” That’s a fundamentally different market than what peaked three years ago.