NFTs, or nonfungible tokens, have been a topic of much debate and fascination in recent years. These unique digital assets have gained significant attention for their ability to represent ownership of scarce or one-of-a-kind items such as artworks, music, and collectibles. However, a recent study by DappGambl has raised concerns about the value and sustainability of NFTs, with the mainstream media outlet Rolling Stone declaring them “finally totally worthless.”
The study, titled “Dead NFTs: The Evolving Landscape of the NFT Market,” analyzed 73,257 NFT collections and found that as many as 95% of NFTs owned by over 23 million investors have no value at all. This means that the vast majority of NFTs in existence are not generating any returns for their owners.
Furthermore, the study revealed that less than 1% of NFTs have a price tag of over $6,000, highlighting that high-value NFT assets are extremely rare. This contradicts the flashy headlines we often see about NFTs selling for millions of dollars, suggesting that these high-profile sales are the exception rather than the norm.
The response from the crypto community to Rolling Stone’s declaration has been mixed. Some agree with the report, echoing the sentiment that NFTs are overhyped and not worth the investment. They argue that NFTs are merely pixels on a screen and hold no intrinsic value. However, others have pointed out the irony of Rolling Stone’s previous articles supporting NFTs, indicating a shift in the media outlet’s narrative on the subject.
One member of the community highlighted a previous Rolling Stone article promoting the Bored Ape Yacht Club (BAYC) NFT collection, emphasizing the change in perspective by media outlets. This raises questions about the credibility and volatility of mainstream media coverage on emerging technologies like NFTs.
While the study and Rolling Stone’s declaration may dampen enthusiasm for NFTs in the short term, some community members believe that the market will experience a reversal in the future. They anticipate that certain NFTs will regain value, and their prices will surge once again. This reflects the unpredictable nature of the crypto market and the ongoing debate surrounding the long-term viability of NFTs.
Another interesting development highlighted in the study is the decline in Ethereum gas usage for NFTs. Gas usage refers to the computational power required to execute transactions on the Ethereum blockchain. The decrease in gas usage suggests a shift in NFT usage, with users holding onto their assets rather than actively trading them. This contrasts with the active trading and movement of assets that dominated the NFT market in 2021.
In conclusion, the recent study by DappGambl has sparked conversations about the true value and sustainability of NFTs. While the study claims that the majority of NFTs are worthless, the crypto community remains divided in their opinions. Only time will tell whether NFTs will regain value and prove to be a valuable investment or if they will fade into obscurity as a passing fad.
