NFT crash renders 95% of digital collectibles worthless according to study
A new NFT study has emerged, where it polled almost 73,000 NFT collections, and found that 95% of the digital collectibles are worthless.
NFTs have been all the rage since their popularization in 2021 and 2022. Celebrities and companies alike were rushing to create the next Bored Ape. Since their inception, figures like Logan Paul have lost millions purchasing the virtual tokens, and minting collections of collectibles themselves.
Now, a new study has shown that the once multi-billion-dollar marker has crashed, with “the vast majority” of NFTs rendered worthless. The study identified and analyzed over 73,000 NFT collections, and found that almost 70,000, or 95% were worth 0 ETH.
The study further claims that over 79% of NFT collections remain unsold, meaning that demand is outstripping supply, thus making the tokens worth much less than their creators would want you to think. This analysis of the overall market might be skewed, however, as almost anyone can mint an NFT of their own.
Top NFT collections analyzed
The study further analyzes the top 1600 NFT collections and found that the most common price for the collectibles is between $5-100. Furthermore, they spotted that 18% of all of the NFTs in these collections are worth absolutely nothing. This means that even the most prominent NFT collections are suffering from the lack of interest in the market, with less than 1% of NFTs in total being worth over $6000.
Through 2021 and 2022, the market was trading over $2 billion dollars of NFTs per month. This figure has now dropped to a comparatively paltry $80 million.
The future of NFTs might be bleak right now, but the nature of the market is that we will just never know when they might regain their popularity. As Bitcoin’s prices go through waves, we suspect that the value of NFTs might also rise and fall, too.