NFT Crash: 95% of NFTs may now be worthless
- Thread starter gwb-trading
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Who would have thought that a picture of an ape is not worth thousands?
Common sense prevails over mania, it always happens, just need some time to get there.
Common sense prevails over mania, it always happens, just need some time to get there.
Forget about thousands. There were attempts to sell crypto punks for 10s of millions of real $. They of course generated 0 interest in real world. Beeple 60 mil sale was a fraud as everyone knows now. Just a wash trade.
First, if you're smart, you would have cashed out long time ago and not dick around hoping for a bounce.Remember when NFTs sold for millions of dollars? 95% of the digital collectibles may now be worthless.
https://markets.businessinsider.com...estors-messari-mainnet-currency-tokens-2023-9
Are NFTs dead?
- Most NFTs may now be worthless, less than two years after a bull run in the digital collectibles.
- A study examining more than 73,000 NFT collections found that 95% had a market cap of 0 ETH.
- Out of the top collections, the most common price for an NFT is now $5-$10.
A recent study looking at the price of thousands of collections seems to suggest the answer is "yes."
A report by dappGambl based on data provided by NFT Scan and CoinMarketCap indicated that 95% of non-fungible tokens were effectively worthless. Out of 73,257 NFT collections, 69,795 of them had a market cap of zero ether.
By their estimates, almost 23 million people hold these worthless assets.
"This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space," the researchers said. "Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses."
NFTs are digital representations of art or collectibles tied to a blockchain, typically ethereum, and each one has a unique signature that cannot be duplicated. In 2021 and 2022, the NFT market saw a huge bull run, at one point leading to $2.8 billion in monthly trading volume.
During that time, popular collections such as Bored Apes and CryptoPunks were selling for millions of dollars, and celebrities such as Stephen Curry and Snoop Dogg participated in the hype. The boom coincided with cryptocurrency's peak when bitcoin was trading close to $70,000. On Wednesday, the price of the crypto hovered just above $27,000.
dappGambl's study shows 79% of all NFT collections currently remain unsold, and the surplus of supply over demand has created a buyer's market that isn't doing anything to revive enthusiasm.
Even filtering out the lower-value, less significant projects, most collections have little value today. Out of the top 8,850 collections by market cap, 18% are worthless, and 41% are priced at $5-$10.
Fewer than 1% have a price tag above $6,000 — a far cry from the regular million-dollar deals of two years ago.
"It becomes clear that a significant portion of the NFT market is characterized by speculative and hopeful pricing strategies that are far removed from the actual trading history of these assets," the researchers said.
"Additionally, this apparent disconnect between listed prices and actual sales could suggest that many sellers are waiting for another massive surge in NFT interest akin to the boom witnessed in 2021, which may not ever occur again."
Second, isn't that what fads are supposed to do? They're created to lure suckers out of their money.
Third, perhaps the most important one that I've mentioned time and time again, don't look up to somebody smarter than you for inspiration. They'll only end up cheating you (and you're likely too dumb to notice). Always befriend those who are dumber than you.
Umm... they STILL are worth thousands on the market when I checked a few days ago.
That's what they are asking. Who is buying?
Themselves. There's some great network graphs on twitter exposing the dark underbelly of the NFT market.
To be fair 95% of individual stocks go to 0 over time as well
stocks are a scam!
stocks are a scam!
I was nftstupid - quite the albatross to wear,.. still healing from all the trauma.
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