NFTs that are practically worthless are officially on life support.
According to a new analysis by crypto platform dappGambl titled “Dead NFTs: The Evolving Landscape of the NFT Market,” 95 percent of tokens are now basically worthless. According to the business, 69,795 of the 73,257 NFT collections examined today have a market cap of 0 Ether.
In other words, 95 percent of NFT collectors — who have been acquired by an estimated 23 million individuals — have exclusive rights to JPGs that are practically worthless.
“This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space,” the report states. “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.”
The tokens rose to prominence two years ago, with some sought-after tokens fetching millions of dollars at the time. However, interest has dwindled dramatically, and prices have plummeted sharply. The floor price of the Bored Ape Yacht Club collection fell to a historic low of less than 30 ETH — around $58,700 at the time — in July, the lowest since October 2021.
Since then, the floor price has only continued to fall, reaching as low as 24 ETH at the time of writing, or about $38,000, according to CoinGecko.
The space is at a crossroads, and the future of the tokens is as unknown as ever. Even after excluding the highest value NFTs, dappGambl discovered that 18% of these top collections had a market cap of 0 Ether, demonstrating that even hyped-up collections had practically become worthless.
That doesn’t necessarily mean that NFTs are no longer relevant; the paper suggests that NFTs “still have a place in our future.”
But, in order to survive the storm, the tokens must have inherent worth, whether that comes from being culturally relevant or embodying genuine art, which is much easier said than done.
Meanwhile, the crypto community appears to be in denial about the severe fall, with some Redditors claiming that NFTs are still in a bull market and that “now is the time to buy.”
It remains to be seen whether they can persuade anyone and breathe fresh life into the space — but we’re not holding our breath.