Snip~
Arguably ICOs evolved into IEOs and IDOs and such, with much more reasonable amount of money being raised. So I think it's not as clear as simply fading away. I agree NFTs are widely overvalued, but just like raising money for new altcoin projects has remained popular, so will these new tokens I imagine. The art & collectables industry are loving them, even if the crypto market isn't so impressed.
ICO, become IEO and IDO but what happened after that people lost interest and finding the bew sector like NFT now these are just good for getting short term returns so I will not invest on them for long term. There is no doubt in that many projects raised in millions in few hours but many of them ended as scam and remaining just become another dump and bump token or coin so nothing actually changed when it comes to utility