In recent years, the NFTs (non-fungible tokens) have attracted frenetic interest: the value of these crypto assets has skyrocketed, in what many believed to be a revolution in the field of encryption and of thedigital art. However, according to a recent report published by dappGambl, a community of experts in finance and blockchain technology, it appears that NFT fever has cooled considerably. 95% of these digital works of art are worth practically nothing anymore.
NFT, the value of crypto works of art drops (almost) to zero
The report, titled “Dead NFT: The Evolving Landscape of the NFT Market” analyzes 73,257 NFT collections. And the authors found that well 69,795 of them have a market capitalization of zero Ether (ETH), the second most popular cryptocurrency after Bitcoin. In other words, 95% of NFTs today have no monetary value.
A hard blow for a market that, in the frenetic bull market of 2021, had reached a trading volume of 17 billion dollars. The report estimates that approx 23 million investors hold these tokens without any practical utility or value.
Another fact that emerges from the study reported by Rolling Stones is that the supply of NFTs has greatly exceeded the demand. Only 21% of the collections considered in the report can boast full ownership of the tokens, which means that approx four out of five collections remain unsold.
Even the value itself of current sales has collapsed. Less than 1% of NFTs are valued at more than $6,000, and most of the most expensive collections are between $5 and $100. But almost a fifth of the “top” collections have a minimum price of zero dollars.
However, the report is not all pessimism. Researchers at dappGambl suggest that although we could never again see a boom like the one in 2021-2022, NFTs may still evolve to survive. For example by assigning specific functions to NFTs, such as passes for access to special events or virtual items that can be used in video games.