Opinion by Charu Sethi, President of Unique Network
The Market Has Evolved
While some argue NFTs are obsolete and others anticipate a speculative revival, both perspectives fall short of the true state of affairs. Neither obsolescence nor another boom is on the horizon. Currently unfolding is arguably the most transformative phase in NFT evolution: a transition into becoming core digital infrastructure for gaming, AI, and machine-driven applications.
Data indicates a clear shift: NFT utility is supplanting speculation. According to DappRadar, Q1 2025 saw a 24% drop in trading volume, yet sales decreased only 10%, suggesting lower prices rather than user attrition. Concurrently, Growth in AI and social DApps leveraging NFTs for agent identity, assets, credentials, and access was sharp. Utility categories like real-world assets (RWAs), domain NFTs and metaverse assets demonstrated sustained interest.
Key indicators include the continued expansion of platforms like Mythical and The Sandbox, where in-game assets fulfill tangible functions. Though interoperable NFTs remain aspirational, practical implementations for developers and users already exist.
NFTs in the Agentic AI Era
The original vision for NFTs centered on enabling verifiable digital ownership, identity, and programmable rights—not speculative trading. It aimed to grant individuals control over their digital lives, encompassing identity, health records, social media content, and creative work. This foundational vision underpins the broader Web3 movement.
This core utility resurfaces with the advent of the agentic AI era, where code merges with cognition. Autonomous AI agents require robust identity, memory, and secure access control to function effectively on-chain.
Maturing AI frameworks position NFTs as embedded infrastructure. They act as identity anchors, verifiable data containers, and access credentials for agents operating across decentralized environments. An NFT-bound agent can independently access services, sign transactions, and execute contract logic—its authority verifiable. Consequently, NFTs transform into persistent operational components that function across various contexts.
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This utility is already being implemented. For instance, Bittensor’s ReinforcedAI subnet issues NFTs as proof of completed Solidity audits, enabling encrypted reviews and decentralized rewards. NFTs also certify input-output processes across AI pipelines. Projects like Peaq employ “machine NFTs” for device identity and autonomy. As AI agents embed deeper into Web3 systems, NFTs will likely underpin diverse workflows, from personal AI wallets to non-fungible autonomous agents.
UX-Driven Wallets and Mainstream Integration
The rise of social wallets is a further impetus. These platforms simplify onboarding via email or social login, embedding digital NFTs seamlessly within familiar interfaces as profile pics, membership badges, and credentials. Over 50% of users aged 18-34 regularly utilize social wallets, particularly in gaming and community applications.
Social wallets prioritize user experience, incorporating NFTs subtly. For instance, in social gaming, players might interact with NFT-based avatars, emotes, or achievements without explicitly recognizing them as such. Yet, these assets retain portability, tradability, and interoperability—functioning as the connective tissue between platforms.
NFTs as Invisible Infrastructure
Therefore, NFTs are neither declining nor primed for a new speculative cycle. They are increasingly becoming core infrastructure, operating as the fundamental layer for asset ownership, transaction logic, and autonomous agent behavior within decentralized systems.
In gaming, they support player-owned economies. For AI agents, they serve as identity and credential containers. In machine-to-machine networks, they enable payments and access rights. This represents a broader architectural shift from front-end collectibles to back-end components integrated into wallets, SDKs, and protocols. NFTs now power access control, data provenance and interoperability, fundamentally altering their role from visible assets to essential system primitives.
Success should not be measured by anticipating a speculative NFT boom—meaningful progress is occurring at the infrastructure layer, quietly cementing NFTs’ foundational role.
