The days of non-fungible tokens (NFTs) selling for millions of dollars are over and the NFT market is largely stagnant. According to a new study by dappGambl, 95% of the more than 73,000 NFT collections are now worth next to nothing.
According to data from NFT Scan and CoinMarketCap, out of 73,257 NFT collections, 69,795 have a zero market cap. Analysts estimate that nearly 23 million people own these worthless assets.
“This frightening reality should serve as a sobering test of the euphoria that often surrounds the NFT space.” say the researchers. — With stories of digital artwork selling for millions and stories of overnight successes, it’s easy to lose sight of the fact that the market is full of pitfalls and potential losses.”
The NFT market experienced explosive growth in 2021 and 2022, with monthly trading volume reaching $2.8 billion at its peak. Popular NFT collections like Bored Apes and Cryptopunks have sold for millions of dollars, and buyers have included celebrities like basketball player Stephen Curry (Wardell). Stephen Curry II) and rapper Snoop Dogg. The NFT boom coincided with the cryptocurrency’s peak when Bitcoin traded at around $70,000. The price is now much lower, just over $27,000.
According to a study by dappGambl, 79% of all NFT collections currently remain unsold, with supply significantly outstripping demand. Most collections are now of little value. Of the 8,850 collections that rank at the top by market cap, 18% are worthless and 41% are offered for $5 to $10. Less than 1% of NFTs are priced above $6,000, whereas two years ago they could have been worth millions of dollars.
“It is becoming clear that a significant portion of the NFT market is characterized by speculative and hopeful pricing strategies that are far removed from the actual trading history of these assets.” The researchers reported what this suggests “Many sellers expect another massive surge in interest in NFTs, similar to the 2021 boom, which may never be repeated.”