The NFT Bubble Has Burst: Most Collections Are Now Worthless, Study Shows
The non-fungible token (NFT) craze that swept the world in 2021 and 2022 seems to have come to an abrupt end. A new study by dappGambl, a platform that tracks and analyzes decentralized applications (dapps), has revealed that 95% of over 73,000 NFT collections have a market cap of zero ether, meaning they are worthless.
The study estimates that 23 million people hold these useless assets, which had a huge bull run in 2021 and 2022 with billions of dollars in monthly trading volume. Some of the most famous NFTs sold for millions of dollars, such as Beeple’s “Everydays: The First 5000 Days” for $69 million, CryptoPunks for $11.8 million, and Bored Ape Yacht Club for $24.4 million.
However, the crash was caused by a surplus of supply over demand, as more and more creators and platforms jumped on the bandwagon and flooded the market with NFTs. The study found that most NFTs are priced at $5-$10 or less, and that only 0.5% of NFT collections have a market cap of over 100 ether, which is about $350,000 at the time of writing. These collections account for 99% of the total NFT market value.
The study also warns about the speculative and risky nature of the NFT market, and advises investors to do their own research before buying or selling any NFTs. “The NFT market is a bubble waiting to burst. Most NFTs are worthless, and the few that are valuable are extremely overpriced. The hype is not sustainable, and the market will collapse sooner or later,” said one of the researchers.
The study has sparked a heated debate among the NFT community, with some agreeing with the findings and others defending the value and potential of NFTs. Here are some of the opinions from different perspectives:
- Art critic: “NFTs are not art. They are digital tokens that represent ownership of something that can be easily copied and shared. They have no intrinsic value, and they are driven by hype and FOMO. They are a scam that exploits people’s ignorance and greed.”
- NFT enthusiast: “NFTs are a revolutionary way to create, share, and own digital content. They are unique, scarce, and verifiable. They empower artists and creators to monetize their work and connect with their fans. They are a new form of digital expression and culture.”
- Tech journalist: “NFTs are a mixed bag. Some are creative and innovative, while others are boring and derivative. Some are worth millions, while others are worth nothing. Some are backed by real value, while others are backed by nothing. They are a fascinating phenomenon that reflects the diversity and complexity of the digital world.”
- NFT investor: “NFTs are a gamble. They can make you rich or poor in a matter of seconds. They can be fun or stressful, depending on your risk appetite and luck. They can be rewarding or disappointing, depending on your expectations and reality. They are not for everyone, but they are for some.”
Relevant articles:
- Remember when NFTs sold for millions of dollars? 95% of the digital collectibles are now probably worthless., Business Insider, September 20, 2023
- 95% of NFTs are Worthless: Report, PetaPixel, September 20, 2023
- NFT Crash: 95% of the Market Is Now Worthless, Study Finds, Business Insider, September 20, 2023
- Your NFTs Are Actually — Finally — Totally Worthless, Rolling Stone, September 20, 2023
Originally published at https://trendydigests.com on September 21, 2023.
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