Accurately valuing NFTs is a feat many claim to understand but few, if any, can reliably perform. Many blog posts and user surveying try to grasp these allusive appraisals, but some fall short of the systematic appraisal processes established in traditional art industries. The draw of generative art and the democratization of culture through NFTs have indeed been revolutionary, but the steady pursuit of profit remains a powerful undercurrent. Championing the intrinsic value of NFTs has quieted as market enthusiasm wanes. Narratives are fickle, often dictated by the whims of macro trends; a resurgence in value is more likely to be sparked by a shift in market sentiment than by a compelling new story. This leaves us pondering the identity of the next wave of NFT buyers.

Identifying the incremental NFT buyer poses a unique challenge. The early adopters, driven by a passion for art and cultural significance, seem to have reached their collecting limits. These enthusiasts now face a ceiling on how much they can invest to support the NFT market. As such, collections like Punks have settled into a pattern, their value pegged to the US dollar rather than fluctuating ETH prices. This stability in USD terms suggests a maturing market, but it also raises questions about future growth drivers and the profiles of new entrants.

The approval of the Ethereum ETF could be a game-changer for NFT markets. Such validation may invite a surge of new buyers, broadening the investor base. These entrants see an ETF as a safer bet. Suddenly, the promise of extra yield could pull them into additional crypto explorations. Here, they'll discover that flaunting wealth with NFTs often beats traditional displays. This shift could spark a renaissance in “blue-chip” NFTs, as large holders seek to signal their status.

PFPs have found their niche in the digital ecosystem, offering instant recognition in online communities, and we’ve seen how high net-worth individuals use this as a bridge into crypto culture. Celebrity entrants in the past have found PFP to be an instant way to show a taste for the culture and recent frenzies such as with Iggy Azalea have shown similar results. An infusion of capital from the ETF and mindshare from celebrities might just revitalize the market for top-tier NFTs. A recent thread of polls on the NFT market suggests that many people sense a comeback but also illustrates the divide between collector motivations and perceived outcomes.

So perhaps our collective fascination with NFTs does indeed boil down to potential financial gain. But, there's still more at play here; there's a yearning for legitimacy. The entry of new groups, possibly catalyzed by the approval of an Ethereum ETF, would further signal a mainstream embrace of the NFTs. Regardless of the current state of things, the persistence of certain collections, in the face of market fluctuations, is a testament to their ingrained position in online culture.