A startling picture of the once-flourishing market of non-fungible tokens (NFTs) is emerging from the digital fog. Once treasured collectibles, contemporary digital art pieces, and symbols of a new hybrid era, NFTs are enduring a brutal reality check.
A study by the Web3 review website dappGambl, utilising data from CoinMarketCap and NFT Scan, reveals that the majority (over 95%) of NFT collections are currently viewed as devoid of worth. This figure sheds light on the dramatic deflation of the NFT bubble that thrived only a year ago when these digital assets bore significant price tags into the millions and were actively traded.
Out of the 73,257 collections analysed, a dismal 69,795 of them hold a market capitalization of virtually zero Ether (ETH). Translated, this suggests that countless individuals worldwide have invested in NFTs that now hold no discernible value.
News of this market shock spread like wildfire among the crypto community, painting a portrait of an industry that, rather disappointingly, is “super dead.”
Nostalgic memories of the NFT market’s meteoric growth in 2021 and 2022, with a peak trading volume of $2.8 billion, seem distant. The past years were marked by sought-after collections such as Bored Apes and CryptoPunks being sold for bountiful amounts, and even notable celebrities joining the ranks of NFT enthusiasts.
However, these golden images starkly contrast with the recent study’s findings indicating a significant retreat in the market’s vitality. This is seen from the majority of NFT collections remaining unsold – a staggering 79%, to be precise. The current climate seems weighted towards buyers, with sellers becoming increasingly hard-pressed.
Experts suggest a sobering reality; even after discarding lower-value projects, much of the collections now comprise merely modest values. Amongst the top 8,850 collections, based on market cap, 18% are deemed worthless with a further 41% priced between $5 to $10. Even more tellingly, less than 1% reach values above $6,000, which is a far cry from the sale prices witnessed in the heyday of NFT trading.
However, despite the current gloomy outlook, it is important to remember that markets are volatile by nature. It’s not all doom and gloom. The technology and the principle behind NFTs are sound and have a place in the future of blockchain advancements. The NFT market could yet experience a resurgence; it’s a waiting game.
Source: Cryptonews
