A recent report has revealed that a significant percentage of Non-Fungible Tokens (NFT) are now considered almost worthless. NFTs, which are unique digital assets that exist on the blockchain, were once hailed as a groundbreaking form of digital currency. However, it’s been found that 95% of NFTs have seen their value plummet, raising concerns about the long-term viability of this market.
NFTs gained significant attention in the past few years, with some fetching outrageous prices. According to a report by Kotaku, cryptocurrency analysts dappGambl has found that 95% of NFTs are now worthless.
The study analyzed 73,257 NFT collections and discovered that the vast majority had a market cap of 0 Ether (ETH), equivalent to $0. Even well-known brand-name NFT collections, including CryptoPunks, were not immune to the decline, with 18% of them having a worth of $0. An additional 41% of NFTs had a value ranging from $5 to $100, a far cry from their previously lofty costs. These findings suggest a lack of perceived value among digital assets and highlight the potential fragility of the NFT market.
The plummeting value of NFTs raises questions about their long-term viability and sustainability. Critics have long viewed NFTs as a wasteful and overhyped trend, and these findings seem to support those concerns. The report’s authors even suggest that the situation may be even bleaker than the numbers indicate. One example cited is MacContract on Ethereum, which has a floor price of $13,234,204.2, yet its all-time sales stand at only $18. This stark contrast between floor prices and actual sales highlights the disconnect between perceived and realized value in the NFT market.
The crash of the NFT market serves as a cautionary tale for investors and creators alike. While some NFTs may still hold value, it is crucial to approach this market with skepticism and conduct thorough evaluations before investing.