NFTs

NFTs Almost Completely Useless, Crypto Researchers Find

Published

3 months ago

29 April, 2024

NFTs Almost Completely Useless, Crypto Researchers Find

Miguel Candela/Anadolu Agency/Getty Images

A team of researchers crunched the numbers to explain why you don’t see people selling ugly cartoon monkeys on the Internet anymore: NFTsor non-fungible tokens, once touted as a revolution in cryptography and digital artare largely useless.

“Dead NFTs: The Evolving Landscape of the NFT Market” is a new report from dappGambl, a community of experts in finance and blockchain technology. After analyzing 73,257 NFT collections, the authors found that 69,795 have zero market value Ether (ETH), the second most popular cryptocurrency behind Bitcoin. In practical terms, this means that 95% of NFTs would not yield a penny today – a spectacular drop for assets that have reached a trading volume of US$17 billion amid a frenzied bull market in 2021. The study estimates that around 23 million investors hold these tokens with no practical use or value.

What’s more, supply has vastly exceeded demand for NFTs. Only 21% of the collections included in the study can claim full ownership, meaning that around four in five collections remain unsold. As buyers become more demanding, the report notes, “projects that lack clear use cases, compelling narratives, or genuine artistic value are finding it increasingly difficult to attract attention and sales.”

And while headlines during the heyday of NFT speculation focused on individual pieces selling for the equivalent of million dollars in cryptography, almost none have such exorbitant prices today. Less than one percent are priced at more than US$6,000, and most of the most expensive collections are priced between US$5 and US$100. Almost a fifth of the “top” collections have a zero minimum price. Even among the most expensive NFTs, the report notes, these prices can be set “without any influence on real, tangible demand,” reflecting the desire of sellers and potentially distorting investors’ views of an NFT’s inherent scarce value.

dappGambl researchers conclude that while we may never see an NFT boom like the one in 2021-2022, the assets can evolve in ways that survive the destruction. For example, they could have a specific function, becoming a pass to access special events or a virtual item to be purchased and traded in video games.

Editors’ Picks

This, however, would not solve perhaps the biggest disadvantage of NFTs, which has become a big controversy as they reached their peak of popularity: their environmental impact. Non-fungible tokens are minted on the blockchain, a process that requires energy, and bought and sold on markets that work with cryptocurrencies “mined” with computer platforms that hold significant value. carbon footprint. But minting tokens itself comes at a cost. The “Dead NFTs” report notes that the nearly 200,000 NFT collections “with no apparent owners or market share” identified by the study caused carbon emissions equivalent to the annual production of 2,048 homes, or 3,531 cars.

Of course, enthusiasts didn’t worry much about this when NFTs were a hot commodity. And if they ever achieve a modest comeback, climate concerns will likely be put to rest again. I can’t let something like this get in the way of the next hype cycle.

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NFTs

https://news.google.com/./articles/CBMiKmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9idXNpbmVzcy02NzI5NTc4NtIBLmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9idXNpbmVzcy02NzI5NTc4 Ni5hbXA?hl=en-US&gl=US&ceid=US%3Aen

Published

57 mins ago

27 July, 2024

TokenTalk Staff

https://news.google.com/./articles/CBMiKmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9idXNpbmVzcy02NzI5NTc4NtIBLmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9idXNpbmVzcy02NzI5NTc4 Ni5hbXA?hl=en-US&gl=US&ceid=US%3Aen

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NFTs

AI-Powered Discovery Network for NFTs Launches $PULSR Token – Press Release Bitcoin News

Published

2 hours ago

27 July, 2024

TokenTalk Staff

https://news.google.com/./articles/CBMiVGh0dHBzOi8vbmV3cy5iaXRjb2luLmNvbS9haS1wb3dlcmVkLWRpc2NvdmVyeS1uZXR3b3JrLWZvci1uZnRzLWxhdW5jaGVzLXB1bHNyLXRva2VuL9IBAA?hl= en -US&gl=US&ceid=US%3Aen

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NFTs

Solana Monkey Business Leads NFT Sales with $875,91K

Published

4 hours ago

26 July, 2024

TokenTalk Staff

Solana Monkey Business Leads NFT Sales with $875,91K

Floptober NFT from above

Image: AI-generated via Midjourney

Solana Monkey Business topped CryptoSlam’s non-fungible token (NFT) sales charts on July 22 with $875,914 in total sales.

The collection had 122 unique buyers, equaling the number of sellers, and an average price of $5,308 per NFT.

This increase in daily sales boosted the SMB’s all-time sales volume to a new record of $212.48 million.

The Solana-based ape-themed collection entered the list of the top 30 NFT sellers of all time over the weekend, knocking SATS BRC-20 NFTs off the rankings.

The second best performing collection of the day was gETH Locked Deposit.

This NFT, which represents gETH locked on the Ethereum layer-2 network Arbitrum, saw a daily sales volume of $583,047 from just one transfer.

The asset was brother-in-law just moments before the transfer is made.

In third place, DMarket’s NFTs and in-game virtual items on the Mythos Network saw a total of $565,002 in sales.

The collection attracted 3,254 unique buyers and 2,848 sellers, with an average price of $24.66 per item. Active DMarket owners stood at 5,111, contributing to a total owner count of 397,931.

Outside of the top three, Ethereum’s DogeZuki Collection came in fourth place with $436,787. Bored Ape Yacht Club, another Ethereum collection, had total sales of $341,576 for fifth place.

While a Solana collection led the day’s results, the network’s total NFT sales for the day were slightly outpaced by Ethereum.

Ethereum led all blockchains in sales on Monday with $4.2 million, with Solana close behind at $4.1 million.

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NFTs

ArcadeXYZ Secures $450,000 in Ringers NFTs

Published

6 hours ago

26 July, 2024

TokenTalk Staff

ArcadeXYZ Secures $450,000 in Ringers NFTs

NFT lending remains strong despite the overall downward trend in prices.

Arcade.XYZ, a non-fungible token (NFT)-based lending protocol, secured $450,000 worth of NFTs from Dmitri Cherniak’s Ringers collection on July 24.

The loan is structured with a principal of $16,000 per NFT, and the current highest bid on the Ringers collection on Opensea is 8 wETH, equivalent to approximately $26,000.

The big loan comes at a time when darlings of the generative art scene like Ringers and Fidenzas continue to see their floor prices drop. Bells It is Fidenzas both have surpassed the 2021 minimum price of 100 ETH and are now at just 17 ETH and 32 ETH.

Collateralized Ringers – Arcade.xyz

Despite the slowdown in sentiment and prices around NFTs, the lending market continues to process consistent volume.

Some of the largest platforms, Blend, Gondi, NFTfi, and Arcade process over $80 million in outstanding debt combined. The NFT lending market broke volume records in Q1 2024, surpassing $2 billion in total volume.

Q1’s extraordinary lending volumes can be attributed to Blend’s Blast airdrop incentive and the rise of Ordinals loan in the Arcade.
The largest NFT loan belongs to CryptoPunk 8219 by NFT collector Gmoney, which was guaranteed for $1 million in Gondi XYZ, and holds a current principal of $700,000. A far cry from the claims made in the mainstream media that “Your NFTs are actually, finally, totally worthless.”

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