Breakthroughs in AI rendering

AI advancements may have rendered NFT collections obsolete by making art styles easily replicable. Previously valued for their uniqueness, NFTs now face competition from AI-generated images.

NFTs struggled for relevance even before the rise of AI’s image-rendering capabilities. Collections depended on their distinct styles and various traits to justify high prices. These collections must now adapt to AI’s evolution to maintain relevance.

AI can create infinite customized images from existing collections, and these can potentially be re-minted as new NFTs. The community appeal of NFT avatars could also be compromised.

Influencers are already noticing AI’s capability to produce new avatars, seeing its potential to either undermine NFT collections or pave the way for their revival.

> ## NFTs are done!
> Dropped my pic into some of the top NFTs, and honestly, the results say more about the space than any chart could! 🧵👇
> — Ali (@ali_charts) March 27, 2025

In previous years, some NFT collections utilized automated generation or AI art, but current filters have gained traction on social media. The new AI rendering techniques have led to a resurgence in meme token popularity, further straining the NFT market as limitless images threaten existing values.

Despite these challenges, dedicated NFT communities and incentives like airdrops could provide a glimmer of hope for NFT artists, who may otherwise be displaced by AI.

NFT collections remaster their art

The integration of Studio Ghibli-style filters led to a significant boom in image remastering, with collections such as Ghiblady Maker springing from the Milady Maker collection, previously valued above $10K. Though the floor price for Milady Maker remains relatively high at 3.24 ETH, it dropped 60% recently due to declining community interest, despite having been used as avatars in the Ethereum community.

Other collections, like Mad Lads, playfully adopted the Studio Ghibli art style, keeping them in the top tier of NFTs, while even Bored Apes tried a similar approach as an experiment. However, this trend hasn’t sparked new collections due to the limited demand stemming from high floor prices.

Overall, NFTs have seen a valuation drop to $1.6B over the past year, falling behind many meme tokens. Nevertheless, top-tier NFTs continue to command high prices, with individual items hitting as high as 135 ETH, exemplified by one Punk selling for 420 ETH recently. Leading collections like Pudgy Penguins and Crypto Punks still hold their positions, but the market shows a divide between affordable items meant for enjoyment and established collections trying to maintain value.

> Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now