NFTs
Nearly 95% of NFTs are now worthless, says report By Crypto.news
Crypto.news – Nearly 70,000 NFT collections now have no market value, dappGambl estimated in a recent report.
The non-fungible token (NFT) market is going through difficult times as 69,795 of the 73,257 digital collections have a market value of 0 (ETH).
According to a report from dappGambl, only 20% of identified collections have full ownership. This means that almost 80% of all NFT collections “remained unsold”.
“This situation reveals a significant imbalance between the creation of new non-fungible tokens (NFTs) and the actual demand for these digital assets in the current market scenario.”
dappGambl
The report does not specify which NFT collections were analyzed, but says that NFT Scan provided the data. The company believes that many NFT collections face adoption difficulties due to a lack of clear use cases, compelling narratives, or genuine artistic value.
According to dappGambl’s estimates, around 195,699 NFT collections have no apparent owners, while the energy required to mint these digital tokens is comparable to the carbon footprint of 4,061 passengers flying from England to New Zealand.
The graph of NFT collections grouped by minimum price | Source: dappGambl
DappGambl also found that just over 40% of top NFTs have a minimum price between $5 and $100, while 18% of digital collectibles are priceless. Just less than 1% of NFTs are priced above $6,000, the report noted.
Analysts at dappGambl say the data shows that the NFT market is now primarily controlled by “hopeful, speculative pricing strategies that are far removed from the actual trading history of these assets.”
Current state of the NFT market
The market has seen better days as many NFT-related startups have faced difficulties recently.
For example, Glass Protocol, a video platform startup, recently suspended its development, citing a lack of “sustainable demand for video NFTs.” Another NFT startup, Voice, initially planned as a decentralized social media network, also stopped offering its services amid regulatory hurdles.
Dovey Wan, the founder of Primitive Ventures, said in a recent post on X that the market crisis has also hit crypto-unicorns. He hinted that OpenSea is now seeking new capital at a market valuation of $1.2 billion, a 90% drop from the $13 billion it had at the start of 2022.