The NFT market has well and truly crashed. A new study has found that a whopping 95% of NFTs are officially worthless.
If you’re unfamiliar with NFTs, which stands for Non-Fungible Tokens, they’re essentially cryptographic tokens that exist on the blockchain. They can be any kind of digital asset - such as an image, video, or piece of audio - and they were supposedly due to act as a one-of-a-kind digital currency. The most expensive NFT ever created, Pak’s The Merge, sold back in 2021 for an eye-watering $91.8 million. You may be thinking, how can a digital image be worth that much? Surely, they can be replicated? Well yes, and that’s likely exactly why in the space of a handful of years, the cursed NFT market has gone up in flames.
As reported by Kotaku, cryptocurrency analysts dappGambl recently carried out a study where 73,257 NFT collections were analysed. The study found out that 69,795 of these collections had a 0 Ether (ETH) market cap which means they’re worth $0. Ouch.
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The study looked at 8,850 brand-name NFT collections, including CryptoPunks, and found that 18% of these also now have a worth of $0. A further 41% are said to have a floor worth between $5 and $100. This is a far cry from the thousands and millions NFTs once had the potential to be worth. Analysts dappGambl said this fall “may signal a lack of perceived value among these digital assets.” I’m sure we could all list 100 better things to spend $91.8 million on.
They added that “the situation may even be bleaker than these numbers suggest”. MacContract on Ethereum was provided as an example. It has a floor price of $13,234,204.2 but the all-time sales sit at only $18.
I think many of us have always viewed NFTs as a waste-of-money fad and scam. It looks as if that’s now been proved to be true.
Topics: Cryptocurrency