SNEAK PEEK
- A report by dappGambl reveals 95% of NFT collections have zero value.
- Data from NFT Scan and CoinMarketCap shows 23 million individuals hold these worthless assets.
- NFTs, especially on Ethereum, peaked during 2021-2022 with trades up to $2.8 billion monthly.
It has been revealed that a staggering 95% of non-fungible token (NFT) collections have effectively zero value. This revelation, unveiled in a report by dappGambl, underscores the need for a sobering reassessment of the NFT landscape.
Out of a comprehensive sample of 73,257 NFT collections, a whopping 95% of them registered a market cap of zero ether, as gleaned from data provided by NFT Scan and CoinMarketCap. This translates to an alarming 23 million individuals holding these seemingly worthless digital assets.
NFTs, those unique digital representations tethered to blockchain technology, with Ethereum being the favored choice, experienced a meteoric rise during the crypto bull run of 2021 and 2022, boasting monthly trading volumes of up to $2.8 billion. High-profile collections like Bored Apes and Cryptopunks commanded millions of dollars in sales, with celebrities like Stephen Curry and Snoop Dogg enthusiastically jumping on the bandwagon.
However, the euphoria that once surrounded NFTs has been mercilessly quashed by dappGambl’s findings. Presently, a staggering 79% of all NFT collections remain unsold, signaling a buyer’s market characterized by a surplus of supply over demand, leaving enthusiasts and investors disenchanted.
Even when filtering out lower-value projects, a gloomy picture emerges. Among the top 8,850 collections by market cap, 18% are rendered worthless, while 41% hover in the $5-$10 price range. Astonishingly, less than 1% bear a price tag exceeding $6,000—a stark contrast to the million-dollar deals of yesteryears.
The study further highlights a glaring disconnect between the listed prices of NFTs and their actual sales. This suggests that many sellers are holding out for a resurgence in NFT interest akin to the 2021 boom—a resurgence that may never materialize again.
