NFTs, or non-fungible tokens, were once hailed as the future of digital ownership and a revolutionary way for artists and creators to monetize their work. However, a recent report by crypto platform dappGambl has revealed that 95 percent of NFT tokens are now practically worthless.
The report, titled “Dead NFTs: The Evolving Landscape of the NFT Market,” analyzed 73,257 NFT collections and found that 69,795 of them currently have a market cap of zero Ether. This means that 95 percent of NFT collectors, which accounts for approximately 23 million people, are holding onto digital assets that have no real value.
“This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space,” the analysis reads. Despite stories of NFT art pieces selling for millions and overnight success stories, the market is riddled with pitfalls and potential losses.
NFTs gained significant attention and popularity two years ago, with some tokens fetching millions of dollars. However, interest has since dwindled, and prices have plummeted. For example, the Bored Ape Yacht Club collection, at one point, saw its floor price drop to a historic low of below 30 ETH, equivalent to around $58,700 at the time.
Since then, the floor price has continued to decline and currently sits at just 24 ETH, or approximately $38,000. Even top-value NFTs are not immune to this trend, as dappGambl found that 18 percent of these collections also have a market cap of zero Ether.
While this bleak state of affairs may suggest that NFTs are on life support, the report argues that they still have a place in the future. However, for the tokens to survive and thrive, they will need to prove their inherent value. This could come from being culturally relevant or representing actual art. Nevertheless, this is easier said than done.
Interestingly, despite the downward spiral of the NFT market, some crypto communities remain optimistic. Some Redditors and Twitter users continue to argue that NFTs are still in a bull market and that now is the time to buy. However, whether their conviction will convince others and breathe new life into the space remains uncertain.
As the NFT market continues to navigate this challenging period, it is evident that the industry needs to find ways to establish value and credibility. This could involve establishing standards for authenticity, promoting actual artistry, and addressing concerns around the environmental impact of NFTs.
Whether NFTs can recover and flourish remains to be seen, but for now, they are undeniably facing a critical moment of reckoning.
Sources:
– dappGambl report: [https://dappgambl.com/nfts/dead-nfts/](https://dappgambl.com/nfts/dead-nfts/)
– Floor price of Bored Ape Yacht Club collection: [https://www.coindesk.com/web3/2023/07/03/bored-ape-yacht-club-nft-collection-floor-price-sinks-to-20-month-low/](https://www.coindesk.com/web3/2023/07/03/bored-ape-yacht-club-nft-collection-floor-price-sinks-to-20-month-low/)
– CoinGecko NFT prices: [https://www.coingecko.com/en/nft/bored-ape-yacht-club](https://www.coingecko.com/en/nft/bored-ape-yacht-club)
