NFTs are out, physical art is in: The return to traditional collecting

In recent years, the art world has undergone a dramatic reversal in attention from the virtual frenzy over Non-Fungible Tokens (NFTs) to the tactile beauty of physical artworks. This is an important change in collector demand and market trends

NFTs became popular in the early 2020s, with sales reaching over USUSD 2.9 billion in 2021. The trend was, however, short-lived. By the first quarter of 2025, NFT art sales had dropped to a paltry USD 23.8 million, a 99 per cent drop from the high. The active traders also dropped from more than 500,000 to less than 20,000, an indicator of waning interest in digital collectibles.

At the same time, the traditional art market has also seen a comeback. Collectors are increasingly turning to physical artworks, attracted by their historical value, craftsmanship, and sensory experience. Auction houses such as Sotheby's have witnessed strong sales, with New York being a major beneficiary in the world art market.

Several reasons have led to this new interest in physical art:

Market Stability: Unlike the unstable NFT market, investments in traditional art have shown long-term value and stability.

Tactile Engagement: Physical art provides a physical connection that cannot be replicated by digital media, contributing to the collector's experience.

Cultural Appreciation: There is increasing appreciation for rich stories and background stories behind traditional art.

Although NFTs created an added layer for art acquisition, the prevailing trend now mirrors a move to the authenticity and timeless value of tangible art. Investors and art buyers are reinvesting in the classic mediums, signifying an even playing field of digital ingenuity and classic craftsmanship within the new art market landscape