The world of non-fungible tokens (NFTs) is evolving rapidly, and according to OpenSea CEO Devin Finzer, the next major wave of adoption won’t be driven by digital art or celebrity collectibles—but by real-world utility, gaming integration, and digital ownership.
In a recent conversation with TheStreet Roundtable host Scott Melker, Finzer offered a forward-looking perspective on how NFTs are transitioning from speculative hype to meaningful use cases that could redefine digital interaction across industries.
From Hype to Foundation: The Evolution of NFTs
Melker opened the discussion by reflecting on the explosive popularity of NFTs during the last market cycle. “Everybody was talking about NFTs,” he said, referencing cultural moments like Saturday Night Live sketches and viral celebrity endorsements. “There was a bubble—call it what you will—but there was definitely a peak of excitement.”
That surge in attention brought massive visibility to platforms like OpenSea, which became one of the primary marketplaces for buying, selling, and trading NFTs. But as the frenzy cooled, so did prices and public interest. What remains, however, is something far more valuable: infrastructure.
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Finzer acknowledged the volatility but emphasized that early hype often precedes lasting innovation. “With every new technology, there’s always this period of excitement and speculation,” he explained. “But that’s when the real builders come in—the ones laying down the foundational layers for long-term growth.”
He likened the current state of NFTs to the early days of the internet: chaotic, misunderstood, and full of failed experiments—but also ripe with potential.
The Shift Toward Utility-Driven NFTs
While profile picture (PFP) projects and digital artwork captured imaginations in 2021 and 2022, Finzer believes the future lies in utility-first NFTs—tokens that do more than just exist as digital collectibles.
“Where I see NFTs going next is moving beyond art and collectibles into more practical applications,” Finzer said. “We’re starting to see developers build real functionality around these assets.”
This shift means NFTs are no longer just about ownership; they’re becoming tools for access, identity, rewards, and interoperability across digital ecosystems.
Gaming Leads the Charge
One of the most promising frontiers for utility-based NFTs is Web3 gaming.
Developers are increasingly using NFTs to represent in-game items—such as weapons, skins, characters, or land—that players truly own and can trade across games or platforms. Unlike traditional games where assets vanish if a server shuts down, blockchain-backed items persist independently.
“I think we're really starting to see a lot of excitement in the gaming space,” Finzer noted. “Developers are realizing this is a powerful way to represent digital items within a gaming economy.”
Though still in its infancy, this model challenges the centralized control of game economies by major studios. Instead, it empowers players with true ownership—a concept Finzer sees as transformative.
For example, an NFT-based sword earned in one fantasy RPG could theoretically be used—or sold—in another compatible game universe. This vision of interoperable gaming assets may take years to fully materialize, but early experiments are already underway.
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Bridging Physical and Digital Worlds
Beyond gaming, another growing trend is the tokenization of physical assets.
Finzer highlighted companies that are linking NFTs to real-world items—from luxury sneakers and watches to event tickets and rare collectibles. These hybrid models allow users to buy, sell, and verify ownership digitally while retaining the ability to redeem the physical counterpart.
Imagine owning an NFT that represents an autographed baseball card. The token serves as proof of authenticity and ownership on-chain, while also granting you the right to claim the actual card stored in a secure vault.
This fusion of digital verification and tangible value enhances trust, reduces fraud, and opens new markets for fractional ownership and global trading.
Digital Art Isn’t Dead—It’s Maturing
Despite the pivot toward utility, Finzer stressed that digital art and crypto-native culture remain vital parts of the NFT ecosystem.
“Just as you collect art in the real world,” he said, “it makes sense to collect art in the digital world.”
But rather than chasing short-term flips based on hype, collectors are now focusing on artists with strong narratives, technical skill, and community engagement. The market is maturing—fewer speculators, more connoisseurs.
Projects rooted in authentic creativity and long-term vision are gaining traction, suggesting a healthier, more sustainable future for digital art.
A Long-Term Vision Amid Market Volatility
Throughout the conversation, Finzer maintained a calm, long-term outlook.
“We don’t necessarily pay as much attention to the ups and downs,” he said. “We’re really just building technology for the long term.”
This mindset reflects a broader shift across the Web3 space—from quick wins to durable innovation. While media attention waxes and wanes with crypto prices, builders continue refining wallets, marketplaces, smart contracts, and user experiences behind the scenes.
For OpenSea, that means improving discovery tools, enhancing security, supporting new standards like ERC-6551 (which enables NFTs to hold assets), and expanding into new verticals such as ticketing and identity.
Frequently Asked Questions (FAQ)
Q: What are utility NFTs?
A: Utility NFTs are tokens that provide functional benefits beyond ownership or aesthetics. They can grant access to events, unlock in-game features, serve as membership passes, or represent real-world assets.
Q: How are NFTs used in gaming?
A: In gaming, NFTs represent unique digital items—like weapons, characters, or land—that players own and can trade freely. This creates player-driven economies and enables cross-game interoperability.
Q: Can NFTs represent physical items?
A: Yes. Some companies issue NFTs linked to physical goods like sneakers, art, or collectibles. The NFT acts as a verifiable digital certificate of ownership that can be transferred or redeemed.
Q: Is the NFT market still growing?
A: While speculative trading has slowed since 2022, the market is evolving. Growth is now focused on utility-driven use cases in gaming, fashion, music, and identity—indicating a more sustainable phase of development.
Q: Are digital art NFTs still relevant?
A: Absolutely. Digital art remains a core part of the NFT space, especially when tied to strong communities or artist reputations. However, the focus has shifted from speculation to curation and long-term value.
Q: What does OpenSea’s future look like?
A: OpenSea aims to become a comprehensive platform for digital ownership—supporting not just art and collectibles but also gaming assets, event tickets, memberships, and more through enhanced tools and developer support.
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As Devin Finzer suggests, we’re no longer in the era of “NFT mania.” We’re entering a more grounded phase—one where innovation quietly outpaces speculation. Whether through immersive gaming economies or bridging physical-digital ownership, NFTs are finding their purpose beyond pixels and price tags.