The NFT (Non-Fungible Token) market, once the diamond in the cryptocurrency crown, has undergone a huge shift. A new study conducted by dappGambl delves into the current state of the NFT landscape, unearthing the alarming number of NFTs whose value has plummeted to zero.
Rise and Fall of NFTs
NFTs experienced a huge rise in popularity within the crypto world, with monthly trading volumes soaring to an impressive $2.8 billion in August 2021.
However, these digital assets now find themselves facing a stark reality – a bear market that has led to a staggering 114% surge in searches for the query “Are NFTs Dead” over the past year.
By analysing data from NFTScan encompassing more than 73,000 NFTs and looking at the top 8,000 NFTs listed on CoinMarketCap, dappGambl has quantified the extent of “dead” NFTs.
Minimal Valuation: 95% of NFTs Worthless
Startlingly, the study reveals that a staggering 69,795 out of the 73,257 NFT collections catalogued on NFTScan have plummeted to a market cap of 0 Ethereum.
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This implies that a huge 95% of the NFT market is now lacking value, mean just 5% of the market possesses any semblance of worth.
Further investigation uncovers the fact that among the identified collections, only a mere 21% boast 100% or more ownership. In essence, a staggering 79% of all NFT collections, or 4 out of every 5, have remained unsold – a testament to the widespread disillusionment within the NFT market.
Prominent NFTs Fading
Turning the spotlight on the upper edges of the NFT market, the study extends its analysis to the top 8,850 collections listed on CoinMarketCap. Alarmingly, it found that 18% of these elite collections exhibit a floor price of zero, signalling that even the most high-profile NFTs are grappling with dwindling demand.
The study takes a deeper dive into NFT valuations, unmasking a new trend. A remarkable 41% of NFTs fall within the valuation range of $5 to $100. Whilst less than 1% of these NFTs command a lofty price tag surpassing $6,000.
To put this into perspective, at the peak of NFT trading, Beeple’s artwork sold for $69 million and Jack Dorsey’s first tweet for $2.9 million. In the highest sale of all time, an NFT sold for $91 million.
As the NFT market grapples with its newfound reality, the comprehensive study conducted by dappGambl serves as an illuminating beacon. It exposes the vast landscape of NFTs rendered obsolete and underscores the challenges faced by even the most esteemed collections. Amidst this evolving ecosystem, NFT enthusiasts and investors are compelled to recalibrate their strategies and perspectives to navigate the intricate web of digital collectibles.