The world of digital collectibles has exploded in recent months, with non-fungible tokens (NFTs) making headlines for selling at jaw-dropping prices—some reaching millions of dollars. While the current frenzy may seem unstoppable, industry experts like Kosala Hemachandra, CEO and founder of MyEtherWallet (MEW), believe the hype cycle will eventually cool down. However, he emphasizes that the underlying concept of NFTs is here to stay and will evolve into more meaningful use cases far beyond digital art and collectibles.
The Rise and Reality of NFTs
NFTs have taken the crypto space by storm, capturing the imagination of artists, collectors, and investors alike. Unlike fungible assets such as Bitcoin or Ethereum—where one unit is interchangeable with another—each NFT is unique, with distinct metadata that verifies its authenticity and ownership. This uniqueness is what gives NFTs their value, especially in ecosystems where scarcity and provenance matter.
Hemachandra draws a parallel between today’s NFT boom and the 2017 ICO (Initial Coin Offering) craze. Back then, ERC-20 tokens dominated headlines as startups raised millions through token sales. Over time, the noise faded, but the technology matured and became embedded in decentralized finance (DeFi), gaming, and other applications.
“NFTs are a hot topic now, but I believe the hype will settle soon,” Hemachandra told Cointelegraph. “Just like how ERC-20 tokens were all the rage in 2017 and are now a normal part of daily crypto life.”
This pattern suggests that while speculative interest may decline, the foundational utility of NFTs could grow stronger over time.
Why NFTs Are More Than Just Hype
Despite skepticism about current market valuations, Hemachandra sees long-term potential in NFT technology. He points out that an NFT’s value isn’t intrinsic—it’s determined entirely by what someone is willing to pay.
“If someone truly cares about owning a specific NFT from 2021, I guarantee they’ll pay any price to get it in 2030.”
This sentiment echoes early skepticism around digital art: Can a JPEG really be worth $69 million? For believers, it’s not just about the image—it’s about proven ownership of a culturally significant digital artifact.
Take CryptoKitties, one of the first real-world applications of NFTs on Ethereum. Launched in 2017, these blockchain-based virtual cats became so popular they famously clogged the Ethereum network. At the time dismissed by many as a novelty, CryptoKitties laid the groundwork for modern NFT standards like ERC-721.
Even today, rare CryptoKitties remain valuable to collectors. As Hemachandra notes, rarity and emotional attachment drive demand—and those factors don’t disappear with market cycles.
From Collectibles to Real-World Utility
While much of today’s NFT activity centers around digital art, profile pictures (PFPs), and virtual fashion, Hemachandra envisions a future where NFTs serve practical legal and financial functions.
“Is it about ownership—or the status of ownership?” he asks. “Right now, owning an NFT is like driving a Lamborghini in the Bitcoin maximalist world. It signals status.”
But beyond status symbols, he sees transformative potential:
- Real estate tokenization: Property deeds represented as NFTs could streamline buying, selling, and inheritance processes.
- Intellectual property rights: Creators could issue NFTs to prove authorship and automate royalty payments.
- Legal enforcement: Smart contracts tied to NFTs might enable self-executing agreements for asset transfers or licensing.
When NFTs move beyond speculation and into these functional domains, Hemachandra believes “that’s when things start getting really interesting.”
Lessons from Past Crypto Trends
Nadav Hollander, co-founder of the crypto lending platform Dharma, shares a similar outlook. In a February 2025 tweet, he compared the current NFT surge to the 2017 ICO bubble:
“NFTs feel like they’ll have 6–9 months of high-value sales, followed by years of market correction.”
This cyclical nature isn’t unique to crypto—it mirrors traditional markets too. The dot-com bubble burst didn’t kill the internet; it cleared space for sustainable innovation. Similarly, a cooling NFT market might eliminate speculative noise and allow genuine utility to emerge.
Hemachandra stresses that not every NFT project will survive. Many are overvalued or lack long-term vision. But just as Amazon thrived after the dot-com crash, some NFT-based platforms may become cornerstones of the digital economy.
Frequently Asked Questions (FAQ)
Q: Are NFTs just a passing trend?
A: While the current hype may fade, the technology behind NFTs—verifiable digital ownership—has lasting value and is likely to integrate into mainstream systems like real estate and intellectual property.
Q: Why are people paying millions for digital art?
A: Value is subjective. For collectors, owning a rare or culturally significant NFT represents both personal meaning and status within digital communities.
Q: Can NFTs be used outside of art and collectibles?
A: Absolutely. Potential applications include tokenized real estate, supply chain tracking, identity verification, and automated royalty distribution for creators.
Q: Is the NFT market currently overvalued?
A: Many experts believe parts of the market are speculative. As with any emerging technology, a correction is possible—but that doesn't negate long-term potential.
Q: How do I verify an NFT’s authenticity?
A: All NFTs exist on public blockchains like Ethereum. You can view ownership history, minting details, and transaction records using blockchain explorers.
The Road Ahead for Non-Fungible Tokens
The journey of NFTs is still in its early chapters. Today’s focus on digital art and viral collectibles may give way to deeper integrations with law, finance, and identity systems. As infrastructure improves and scalability solutions like Layer 2 networks mature, NFTs could become as commonplace as digital IDs or online banking.
Hemachandra remains optimistic: “We’re not seeing the peak of NFTs—we’re seeing the beginning.” The challenge lies in moving beyond flashy headlines and building systems that deliver real utility.
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As history shows, transformative technologies often arrive wrapped in hype. The key is recognizing the signal beneath the noise. For those willing to look past today’s price tags and celebrity auctions, NFTs offer a glimpse into a future where digital scarcity, provenance, and ownership are seamlessly enforced—onchain.
Core Keywords: non-fungible tokens, NFT, blockchain, digital ownership, ERC-721, CryptoKitties, MyEtherWallet, tokenization