Magic price

Non-fungible tokens (NFTs) are making a comeback after facing a tough couple of years. According to DappRadar, NFT trading volumes dropped from $16.8 billion in 2023 to $13.7 billion in 2024. Although this decline was marked, a recent report from DappRadar found that NFT metaverse trading volume jumped 83% in July compared to the previous month. DappRadar’s July industry report also shows that NFT prices have been climbing alongside token values, particularly on Ethereum (ETH). Source: DappRadar AI Drives NFT Market Growth Additionally, combining artificial intelligence (AI) with NFTs continues to help the sector thrive. Hamza Eddiouane, advisor and co-creator of the NFT project FURO, told Cryptonews that AI changes the fundamental role of NFTs. “Instead of being static, NFTs can now be interactive, dynamic, and personalized. They can respond to users, learn from users, and even grow over time,” Eddiouane said. Although this may seem like another buzzword being applied to the blockchain industry, Eddiouane explained that combining AI with NFTs is important because it provides real utility and emotional weight. “I’ve seen how most of the JPEG-era NFTs collapsed in value: more than 95% are effectively dead,” he said. “ But when you combine blockchain ownership with AI-driven interactivity, you get something that people can actually use, form bonds with, and keep coming back to. That’s a much stronger foundation for long-term cultural and financial value.” Echoing this, Aaron Teng, APAC CEO of the popular NFT project Pudgy Penguins, told Cryptonews that NFTs are entering a mainstream phase. “We are now seeing NFTs tied to identity, culture, and fandom—not just speculation—thanks to AI,” he said. AI Companion Token Offers Emotional Experiences To put this in perspective, Eddiouane explained that FURO is an Ethereum-based 3D NFT project that rethinks NFTs entirely. Instead of static images that may lose value over time, FURO offers AI-powered companions that learn, remember, and even grow with their owners. “People don’t just want digital souvenirs; they want interactive relationships with the things they own. Think about why Tamagotchis, Pokémon, or even how Labubu’s became cultural phenomena—it wasn’t just about ownership, it was about the feelings those characters created,” he said. According to Eddiouane, FURO is bringing that same cultural and emotional depth to crypto. For instance, the $FURO token promises holders a personal AI that learns and evolves alongside them. This AI-powered crypto token also allows exclusive access to a digital art NFT collection. FURO will eventually offer a physical version in which its AI assistant will be integrated directly into the toy itself. Your $FURO digital companion is about to come to life We’re launching a 3D NFT collection like no other. Read more pic.twitter.com/INgowCu6gi— $FURO | Your Plushy AI-Companion (@myfuroai) August 19, 2025 “The AI assistant is the core of FURO,” Eddiouane elaborated. “Each $10 NFT unlocks a mini AI app where holders can chat and evolve their FURO character. Over time, FURO becomes more personal: it remembers past interactions, adapts to users’ style, and can even reflect emotions. It can act as both a friend and an assistant.” Another example of something similar is being done by Treasure DAO, which is part of the ecosystem behind the $MAGIC token. Treasure DAO recently launched an “AI agent creator,” letting holders of top NFT collections like Pudgy Penguins turn their NFTs into fully autonomous AI agents. According to a recent X post, these agents can chat, post on X, play games in the metaverse, and even trade crypto. The Agent Builder lets users and developers build and launch custom AI agents. – No-Code Interface: People can create agents by setting their roles, skills, and instructions without needing technical know-how. – Advanced Tools: Developers can add specialized features like data…— WORK FOR YOUR BAG SHAMELESSLY|| PEACE || (@0xrealday) August 20, 2025 AI Powers Community-Driven Content AI is also helping NFT creators expand their collections. For instance, Teng shared that Pudgy Penguins contains thousands of AI-generated content prompted by its community. “This helps us distribute more content, more mindshare, at scale,” he said. Pudgy Penguins just rolled out a new integration with @avastudio_ that turns your NFT into an AI-powered content machine. As a holder, you can now generate short-form videos using your own Penguin.  Just type a prompt, and the AI does the rest, your Pudgy becomes the star.… pic.twitter.com/816KCwtyba— shotgun (@shotguncaio) August 7, 2025 Teng added that AI is turning NFTs from static collectibles into living digital assets by enabling personalization, interactivity, and cultural adaptability at scale. “This makes NFTs feel more like experiences rather than pictures,” he said. Sebastien Borget, co-founder of metaverse platform The Sandbox, further told Cryptonews that The Sandbox is making user content creation easier with AI tools. “The Sandbox is using generative AI and vibe coding to provide templates and ways for creators to easily publish on their LANDS—a digital piece of real estate—through presets, asset directory, or even copy-paste existing experiences,” Borget said. Borget added that content creation has become more accessible and commoditized due to AI. “Just a simple prompt can enable an unlimited number of variations of an NFT.” Challenges To Consider While AI is helping the NFT market mature, a number of challenges remain. For instance, Borget pointed out that the use of AI comes at a cost. “People tend to think AI is widely available and free, hence making users pay to support these costs has been a challenge for many projects,” he noted. In addition, Borget mentioned that while most NFT collections are associated with digital scarcity, valuing work created by AI can be more difficult. Teng added that authenticity, scalability, and ownership rights remain the biggest issues with AI-powered NFTs. “Delivering AI experiences to millions of users requires strong infrastructure. Rights frameworks must make it clear who owns the outputs,” he said. Echoing this, Kai Wawrzinek, co-founder of Impossible Cloud Network, told Cryptonews that if an artwork NFT is generated by AI, it remains questionable who holds the rights. “Does the coder, the prompter, or the AI itself own the rights? Also, if there is mass production, then there is a risk of flooding the market and devaluing something that was once unique,” Wawrzinek said. Challenges aside, AI-powered NFTs appear to be the next growth phase for the digital collectible sector. Crypto-friendly regulations in the United States will also likely contribute to the development of AI-driven NFTs. “AI is not going to take away from human creativity; rather, it is going to augment it,” Wawrzinek said.