IMPORTANT POINTS:
- 95% of NFTs have a market value of 0 Ether.
- Most NFTs, 79%, remain unsold.
- Despite low demand, there is confidence in the future of NFTs.
Once upon a time, several members of the crypto community invested millions of dollars in JPEG images of apes, punks, rocks, etc. However, the enthusiasm associated with NFTs faded with the arrival of the bear market.
To date, there has been no significant improvement. Over the last 30 days, sales of NFTs on prominent blockchains such as Ethereum, Polygon, Solana, Bitcoin, BNB, Cardano, etc., have decreased by between 10% and 45%. A couple of chains, like Flow and Mythos Chain, were exceptions. In addition, the number of buyers has also decreased.
Recent research by dappGambl revealed that the vast majority of NFTs are worthless. Of the 73,257 collections identified, approximately 69,795 of them had a market value of 0 Ether. The report highlighted:
“This statistic effectively means that 95% of people who own NFT collections are currently holding worthless investments. Analyzing those figures, we estimate that that 95% includes more than 23 million people whose investments are now worthless.”
Just as the S&P 500 serves as a proxy for the overall health of the US stock market, analyzing major NFT collections could provide a deeper understanding of the overall state of the market. According to the study, more than 1,600 of the top-listed NFTs are dead, with 18% being completely useless. On the other hand, the most common price range was 5 to 100 USD.
Most NFTs remain unsold
Currently, the NFT market is in the midst of an imbalance between supply and demand. According to dappGambl, the excess of supply over demand is creating a buyers’ market where potential investors are becoming more selective, carefully evaluating style, uniqueness and potential value before making a purchase.
Consequently, projects that do not have well-defined use cases, compelling narratives, or genuine artistic value are finding it increasingly difficult to attract attention and sales. According to his analysis:
“Only 21% were fully acquired, in terms of having 100% ownership or more. This means that 79% of all NFT collections, or almost 4 in 5, have remained unsold.”
Despite the current state of the market, many in the community have declared this asset class completely dead. However, dappGambl believes that the tides will eventually turn. They concluded their report by stating:
“In our opinion, NFTs still have a place in our future. The hype of 2021 was destined to fail, as all things overhyped do. At dappGambl, we maintain that once the dust has settled, we will begin to see an evolution within NFTs.”
