A recent report indicates that a significant 95% of mainstream non-fungible tokens (NFTs) have seen their values plummet, rendering many almost valueless.
On September 20, the media company Rolling Stone spotlighted an analysis by dappGambl titled “Dead NFTs: The Evolving Landscape of the NFT Market.” This study delves into the reasons behind the sharp decline in value of most NFTs, which failed to gain substantial momentum in recent months.
According to the study’s findings, of the 73,257 NFT collections examined, an astounding 69,795, or 95%, wouldn’t fetch a single dollar in today’s market. Approximately 23 million investors are in possession of these now ‘virtually worthless’ tokens.
The report has elicited a wave of reactions throughout the digital currency domains, with many resonating with the study, especially those among the 23 million holders of the devalued tokens.
Numerous crypto aficionados voiced their concerns, echoing the sentiment that their holdings have indeed become worthless. Remarks such as “Do people even buy these?” and “That’s such a spectacular fall” have been circulating in response.
Many pointed fingers at the way NFT projects are marketed as a primary reason for the current disappointment. They argue that the combined effects of limited real-world applications and overhyped campaigns contributed to the inflated token prices, which eventually collapsed.
However, not all the feedback was negative. Advocates for NFTs highlighted what they perceived as inconsistencies in Rolling Stone’s reporting over time. One user unearthed a previous article from November 2021 on Rolling Stone’s website that endorsed the Bored Ape Yacht Club Collection (BAYC), questioning the publication’s shifting stance on the matter.
Some believe that the downturn in the cryptocurrency market influenced the decline in NFT prices and anticipate a significant uptick as the market recovers.
“A few might see a resurgence. Some could even see a 1000% increase during a bullish phase. And once again, there’ll be astonishment over pixels being valued in the millions.”
Is there hope for a rebound? NFTs are drowning
In 2021, the NFT hype drew many to the world of blockchain, offering a fresh perspective distinct from the conventional payment system associated with other digital assets.
As the popularity of these projects grew, NFT trading volumes skyrocketed, reaching over $17 billion during the 2021 bull run. However, since then, it has dwindled considerably.
Many have pointed to the ongoing cryptocurrency downturn as a significant influence. They argue that the decreased usage and overall value retained in decentralized applications (dApps) is a primary cause for the current stagnation.
Compounding the situation for NFTs is the decreased demand within the ecosystem. The report underscored that only 21% of the total collections are wholly owned, leaving a vast majority unsold.
