Remember when NFTs sold for millions of dollars? 95% of digital collectibles may now be worthless.

Bored Ape Yacht Club NFTs in Times Square during an NFT conference in June.Noam Galai/Getty Images

• Most NFTs may now be worthless, less than two years after a bull run in digital collectibles.

• A study that examined more than 73,000 NFT collections found that 95% had a market value of 0 ETH.

• Of the major collections, the most common price for an NFT is now $5 to $100.

Are NFTs dead?

A recent study that analyzed the price of thousands of collections seems to suggest the answer is “yes.”

A report of dappGambl based on data provided by NFT Scan and CoinMarketCap showed that of 73,257 NFT collections that researchers analyzed, 69,795 of them, or just over 95%, had a market value of zero ether.

According to their estimates, almost 23 million people own these worthless goods.

“This frightening reality should serve as a check on the euphoria that often surrounds the NFT space,” the researchers said. “Amid stories of digital art pieces selling for millions and overnight success stories, it’s easy to overlook the fact that the market is rife with pitfalls and potential losses.”

NFTs are digital representations of art or collectibles tied to a blockchain, typically Ethereum, and each has a unique signature that cannot be duplicated. In 2021 and 2022, the NFT market saw a huge bull runreaching a point that led to US$2.8 billion in monthly trading volume.

During this period, popular collections like Bored Apes and CryptoPunks sold for millions of dollars, and celebrities like Stephen Curry It is Snoop Dogg participated in the hype. The boom coincided with the peak of cryptocurrency when Bitcoin it was trading close to $70,000. On Wednesday, the crypto price hovered just above $27,000.

dappGambl’s study shows that 79% of all NFT collectibles currently remain unsold, and the surplus of supply over demand has created a buyer’s market that is doing nothing to revive enthusiasm.

Even filtering out lower value and less significant projects, most collections have little value today. Of the top 8,850 collections by market value, 18% are worthless and 41% are priced between $5 and $100.

Less than 1% are priced above $6,000 – a far cry from the regular million-dollar deals of two years ago.

The NFT market is dead compared to 2021 and 2022.dappGambl

“It is clear that a significant part 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 said.

“Furthermore, this apparent disconnect between listed prices and actual sales may suggest that many sellers are hoping for another massive surge in NFT interest similar to the boom witnessed in 2021, which may never occur again.”

Read the original article at Business Insider

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