Key Points:
- NFTs and DAOs will reappear in different forms as CZ emphasizes new structures following a previous decline.
- The NFT market declined sharply, with 95% of collections losing value, and prices across sectors fell.
- The adoption of crypto is on the rise worldwide, with predictions of significant growth in assets and stablecoin usage.
Binance Founder Changpeng Zhao said narratives around NFTs and DAOs could return in new forms as the market continues to adjust after the sharp post-2021–2022 downturn. In a more recent interview with TBPN, Zhao explained that although earlier iterations of these concepts had lost momentum, the concepts behind them remained alive and could reappear with different structures.
CZ NFTs DAOs Evolution, not disappearance, of Narrative Points.
Zhao clarified that although most blockchain-based trends seem cyclical, their resurgence tends to be driven by structural and functional changes. He observed that NFTs and DAOs may evolve into new forms, even informally referred to as NFT2, while still reflecting the principles that underpin them.
“I think many things will have a second wind, but the second wind will most likely be a little bit different,” Zhao said during the discussion.
Zhao explained the repetitive nature of digital asset markets as a defining trait and that historical trends are usually replicated in new ways. He noted that NFTs and DAOs can be reintroduced in new forms that are not tied to prior versions but share similar principles.
The CZ NFTs DAO’s perspective is based on change rather than extinction, and it holds that the constraints identified during the boom period could affect the development of these concepts in subsequent cycles.
Market Data Reveals the degree of NFT fall.
The NFT market saw a sharp rise and then a sharp decline in a short time. The highest NFT activity coincided with a broader period of increased speculation in the digital asset market in early 2022.
Nonetheless, a 2023 report found that around 95% of NFT collections had become essentially useless, meaning the value of most projects had fallen drastically. Early 2022 data also indicated that approximately 60% of NFT trading volume was associated with wash trading, in which all transactions occurred between the same parties as buyers and sellers.
This activity contributed to overvaluation, which was corrected later as general market conditions changed. There was also no long-term demand after the speculative period, which further fuelled the industry’s contraction.
Despite the downturn, Zhao explained that tokenized art will be revisited in the future, citing that it’s unclear when a permanent recovery will be achieved. He pointed out that digital ownership models based on art and similar assets may expand beyond the present, suggesting that the very concept remains part of the ongoing evolution.
The CZ NFTs DAOs outlook, therefore, includes the expectation that tokenization may recur across multiple cycles, reflecting adjustments in how assets are issued, traded, or integrated into broader systems.
Blockchain Integration May Reduce Visibility of Technology
Zhao also touched on the long-term direction of blockchain technology, saying that he believes cryptocurrencies and related systems will become less prominent as subjects in the future. He made these remarks during an appearance on the Wolf of All Streets podcast, hosted by Scott Melker.
He compared the potential evolution of blockchain to the internet, where foundational technologies such as TCP/IP and HTML are widely used without being actively discussed. Zhao stated that within several years, users may interact with blockchain-based systems without focusing on the underlying infrastructure.
“I’m hoping that we don’t talk about crypto as crypto in five years,” Zhao said, adding that usage could become more integrated into everyday processes.
Adoption Figures and Forecasts Indicate Expansion
The use of cryptocurrencies is becoming increasingly popular worldwide, with the number of users expected to reach $559 million by 2026, according to DemandSage.
Source: DemandSage
In a January report, Cathie Wood of ARK Invest said the market of digital assets could grow to $28 trillion by 2030. Separately, Reeve Collins indicated that stablecoins could become a dominant form of currency within the same timeframe.
Additional estimates from the Chainalysis project suggest that stablecoin transaction volumes could reach $1.5 quadrillion by 2035. According to a Citi survey, banks and asset managers believe that, in 5 years, about 10% of post-trade market turnover will be conducted using stablecoins and tokenized securities.
