A recent report from nftevening.com reveals a disturbing state of the non-fungible token (NFT) market, with 96% of NFTs now considered “dead.” The analysis highlights the high unprofitability rate among holders and the volatile lifespan of most NFTs.
The NFT sector faces an uncertain path as the 2024 Bull Run bypasses it
As highlighted in nftevening.com’s 2024 report, the once-celebrated future of digital ownership, the NFT market, is currently struggling with significant hurdles. The report examined more than 5,000 NFT collections and approximately 5 million transactions to assess the current state of the market.
A whopping 96% of NFTs were considered “dead,” meaning they showed zero trading volume, had a minimum sales period of seven days, and were virtually nonexistent on social media platforms like status of numerous NFT projects.
Furthermore, the report sheds light on the financial pressure that NFT investors are experiencing: more than 43% of holders are in the red. On average, these investors have faced a 44.5% dip in their investments. Notably, the lifespan of an NFT now averages just 1.14 years, which is noticeably shorter than that of traditional crypto asset projects.
This brevity indicates that NFTs struggle to retain value over the long term, further contributing to the overall instability of the market. Bitcoin.com News reported that NFT sales are down 41.36% from July, with July sales of digital collectibles down 36.6% from June.
Furthermore, nftevening.com’s analysis points to a stark contrast in the profitability of different NFT collections. While some, like the Azuki Collection, have thrived thanks to strong community involvement and clever marketing, others, like the Pudgy Penguins Collection, have plummeted, with holders suffering a 97% drop in value.
The future of NFTs remains uncertain, leaving us to wonder if they have truly bottomed out. While other areas within the crypto and blockchain space have seen growth during the 2024 bull run, NFTs have unfortunately gone in the opposite direction, with a steady decline since the beginning of the year. However, according to Cryptoslam.io statistics, NFT sales have reached a total revenue value of $66.128 billion.
What do you think of nftevening.com’s NFT analysis? Share your thoughts and opinions on this topic in the comments below.
