What the rise and fall of NFTs says about human behaviour

If 2021 was the year of the NFT, 2024 seems to be its swan song.

Non-fungible tokens promised ownership of digital art, memes and even tweets.

Hailed as the future of art, finance, and fandom, the NFT phenomenon was so much more than just a fickle trend.

These flashy digital collectibles, built on blockchain tech, exploded into the spotlight with quirky projects like CryptoKitties in 2017 and reached fever pitch by 2021.

At their peak, they promised to revolutionise ownership in the digital age. Instead, they left us with some overpriced JPEGs and a hangover.

By 2021, NFTs became the must-have digital status symbol, with everyone from artists to tech bros to your uncle who’s 'really into crypto' cashing in. Jack Dorsey sold his first tweet for $2.9 million. People paid six figures for cartoon apes.

It was a time of absurd abundance and strange displays of wealth.

And then—predictably—it all fell apart.

The origin of NFTs.

Like I said, NFTs were born from blockchain technology, the same digital ledger that powers cryptocurrencies like Bitcoin and Ethereum.

The concept seemed tailor-made for the internet era: using cryptography to create scarcity in a world of infinite digital copies.

The first NFT projects, like CryptoPunks and CryptoKitties, were niche experiments that tapped into a tech-savvy crowd. But the turning point came when big names in art and entertainment entered the fray.

Beeple’s record-smashing $69 million NFT sale in early 2021 was the 'Big Bang' moment that sent the world scrambling to mint, sell, and buy anything with a pixelated edge. Suddenly, NFTs weren’t just about tech enthusiasts; they were about prestige, capital, and of course, clout.

NFTs as a cultural phenomenon.

Their rapid rise was all about timing.

NFTs emerged in a world grappling with lockdowns, stimulus checks, and a surge in digital-first lifestyles. Stuck at home and seeking new ways to express identity and wealth, people turned to NFTs.

Honestly, it had nothing to do with art. Owning one was a social signal, a golden ticket into exclusive communities like Bored Ape Yacht Club.

Brands jumped on the bandwagon, too. From Taco Bell’s NFT taco art to Gucci’s digital sneakers, everyone wanted a slice of the blockchain pie. For a brief moment, it seemed like NFTs could do it all—revolutionise ownership, democratise art, and create entirely new revenue streams.

The bubble bursts.

And then...the cracks started to show.

Critics pointed out the environmental cost of blockchain transactions. The market became flooded with low-effort projects and outright scams. Prices plummeted, with NFTs once worth millions now selling for mere dollars—or not at all.

In hindsight, NFTs mirrored the speculative bubbles of the past: tulip mania, the dot-com boom, even Beanie Babies. They thrived on FOMO and hype. But when the novelty wore off, so did the perceived value.

But what does it all MEAN?

The NFT story is less about tech and more about human behaviour.

Their rise was fuelled by our obsession with status, our hunger for new ways to connect, and our willingness to gamble on what’s next.

Their fall highlights our collective burnout with overhyped promises and the growing demand for tangible, meaningful value.

It also speaks to a cultural shift. The digital era is maturing, and we’re starting to separate the signal from the noise. NFTs might not have been the future of art. But their legacy lies in how they challenged us to rethink ownership, creativity, and community.

So, as marketers, why should we care?

The NFT boom is a cautionary tale for anyone in branding and marketing. It’s a reminder that novelty can only take you so far. To build something lasting, you need authenticity, trust, and—dare I say it—utility.

For brands looking to avoid the same fate, the takeaway is clear: focus less on chasing trends and more on creating real value.

Whether it’s an NFT, a product, or a campaign, the goal should always be to offer something meaningful, not just marketable.

-Sophie, Writer