The cryptocurrency space, often celebrated for its transparency, has faced a significant reckoning with Non-Fungible Tokens (NFTs). Recent data from dappGambl reveals that a staggering 95% of NFT collections have plummeted to a value of zero, rendering countless investors with worthless assets.
Out of a total of 73,257 identified NFT collections, an astonishing 69,795 now carry a market capitalization of 0 Ether (ETH). This alarming statistic equates to over 23 million individuals whose NFT investments have been reduced to zero.
This downturn casts a harsh light on the NFT market, particularly given the sensational sums spent on NFTs, including randomly generated digital images. The collapse has led to legal action against celebrities, such as Madonna, who endorsed NFTs during the height of the craze.
Even when focusing on the top 8,850 NFT collections, as ranked by CoinMarketCap, the situation remains grim. Researchers shifted their focus to the floor prices of NFT assets within these collections, revealing that over 1,600 of these projects have effectively ceased to exist, with a floor price of $0, implying they could be obtained for free.
The majority of listings were priced at under $100, with less than 1% commanding a listed floor price exceeding $6,000. This analysis underscores the widespread devaluation across the NFT sector.
Another critical indicator of the NFT market’s decline is the precipitous drop in trading volume. It has tumbled by a staggering 96% from its 2022 peak. Monthly transaction value has reached a recent low of $253 million, a stark contrast to the zenith of over $6 billion in December 2021, marking a decline of 95.8%.
Interestingly, the number of unique buyers has diminished by approximately 65%, from around 1.4 million to less than half a million. This suggests that while NFT transactions persist, they occur at significantly lower values than previously witnessed.
The future of the NFT market remains uncertain, with little indication that the current trend will reverse.
