The rise of AI-generated art may be making traditional NFT collections obsolete. With AI capable of replicating any artistic style, the uniqueness that once defined NFT collections is fading.

NFTs were already struggling before AI enhancements allowed for unlimited image variations, challenging their scarcity-based value. Some collections are attempting to adapt by integrating new artistic styles, such as Studio Ghibli-inspired remasters. However, the market remains sluggish, with NFT valuations dropping while meme tokens gain traction.

Despite declining interest, blue-chip NFT collections still hold value, but much of the activity comes from internal communities rather than new investors. The NFT space remains divided between casual, low-cost collectibles and high-value assets striving to maintain relevance.