A lot of projects are down 90% or more from their ATH, so it is not just an issue with NFT art as much as I don't like it. It is an overall trend of devaluation of different things, because everything back then was hyper inflated. The less useful things that hold less real value are going to experience higher reductions. Still, we are only judging this from the outside with limited information. Who is to say that somebody did not conduct some very successful money laundering, tax write off or something else entirely on this loss?
Well, most NFTs were speculative driven only by hype. Only a few were otherwise. Because of this, demand for NFTs have fallen sharply. But scammers, money launderers, and tax evaders took advantage of the situation and made fortunes along the way. If NFTs were to make a comeback, it would only be a result of regulators getting their hands on the industry.
Like I've said, regulators could force popular NFT marketplaces (eg: OpenSea, Magic Eden) to comply with KYC/AML. This will lead to increased centralization and limited privacy, but it will give NFTs a much-needed boost. Especially under the eyes of VCs, and institutional investors. I wouldn't say it's "game over" for NFTs yet. We'll see what happens in the long run.