Currently, NFTs are going through a tough period as the trend is no longer attracting attention and capital from investors. As a result, we've seen a decline in trading volume on NFT marketplaces and the disappearance of NFT news from crypto media, a stark contrast to the excitement and popularity this trend once had in 2021. I don't think they've failed, but they are disappointing investors, especially as they're skeptical about the return of NFTs in this bullrun.
It's true they are definitely disappointing investors, especially since crypto has largely recovered from the bear market, or at least stopped losing value and more or less bottomed out.
If anything it reminds me of cryptopunks in 2019, which is the only comparison to really go by I think, as one of the only collections that has had more than one proper bull/bear market cycle already. This was when the crypto market was having it's major recovery, similar to 2023, and in the meantime these nfts were struggling to get above $200 after becoming completely worthless post 2017 bull market. Ironically it took until about late 2020 before price stabilised around 1 ETH and the NFT bull market began, so depending where we are in the 4-year-cycle, if the market is still in a cycle that is, then it'd still be a bit early for NFTs to be doing much else than struggling to keep up right now. I'd say it otherwise looks like cryptopunks as finally bottomed out at around 20 ETH where there was previous consolidation in 2021, and have since increased by 50% (for the first time since 2022), so it is possible signal that they might be making a comeback sooner rather than later.