NFT Space Is Really Dead
A recent study by dappGambl found that 95% of NFT projects have a market capitalization of zero.
In 2021, the NFT industry experienced its peak of popularity. Everyone and everywhere was talking about the new trend. In August 2021, the monthly trading volume of NFT reached a peak of $2.8 billion. The year 2022 was a tough for the entire crypto space. The NFT industry also suffered. The number of internet searches about the “death” of NFT increased by 114%.
dappGambl decided to see if the NFT space is really dead. The company analyzed over 73,000 NFTs listed on NFTScan and another 8,000 top NFTs according to CoinMarketCap. The analysis determined the number of NFTs whose market capitalization and minimum value are zero.
It turned out that 69,795 NFTs have zero capitalization in Ethereum. In other words, 95% of the NFT market has no value. 79% of all the collections analyzed remained unsold. These numbers are indicative of a huge problem that is looming over the entire digital collectibles industry.
Of the top 8,000 NFTs, there are 18% of collectible tokens whose market capitalization is also zero. Even the top collections are having trouble keeping up with demand. 41% of the market has a value between $5 and $100. And only 1% of all NFTs exceed a value of $6,000. These numbers underscore the lack of buyer interest.
Yet there is a glimmer of hope. Many experts are confident in the future of the NFT. But industry needs to move beyond collectibles and bring utility to consumers.
