As most of us probably already know, NFTs or Non-Fungible Tokens are digital assets that represent ownership or the authenticity of an item or piece of content, which include but aren’t limited to digital art, collectibles, music, videos, etc. These are recorded on blockchains, which provide a decentralized and secure ledger that verifies and tracks ownership and transaction history—which makes each one unique from one another.
The most popular ones on the internet are the Bored Ape Yacht Club, Axie Infinity, Cool Cats, CryptoPunks, and so on. Popular personalities such as Stephen Curry, Snoop Dogg, LeBron James, Paris Hilton, Lindsay Lohan, and many more even participated in this hype.
Recently, crypto-gambling site dappGambl published their findings and research last September 20, 2023, on what seems to be the current state of the Non-Fungible Tokens (NFTs) market, stating that “95% of NFTs are dead.”
This was an unprecedented shift surrounding the popular cryptocurrency trend turned fad, which originally sold for billions of dollars monthly back in August 2021. While these digital assets were totally high-risk with an equally high reward, around 23 million were calculated to be owners of the now “worthless” investments.
NFT Scan analyzed 73,257 NFT collections and concluded their findings by saying that the “vast majority of NFTs are currently worthless,” with its market price at a value of 0 ETH (1 ETH = 1,600 today.) Currently, 41% of NFTs are now priced between $5 and $100.
Further analysis also stated that about 79% of NFT collections still remain unsold and that currently, there is a “significant imbalance” in the supply and demand of NFT collections. According to dappGambl, “It is a buyers’ market where a lack of ‘clear use cases, compelling narratives, or genuine artistic value’ makes new and established collections unattractive to investors.”
Following this revelation, the researchers behind the study said, “This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space. Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses.”
However, the same researchers also say that “NFTs still have a place in our future,” and that they either have to be historically relevant, true art, or provide a sort of genuine utility. So take this report with a grain of salt, and more importantly, protect your money.
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