DappGambl reports that during the 2021/2022 cryptocurrency bull market, Non-Fungible Tokens (NFTs) emerged as a major phenomenon.
NFTs, or Non-Fungible Tokens, are unique digital assets authenticated using blockchain technology. Unlike cryptocurrencies like Bitcoin or Ether, which are interchangeable and identical, each NFT has different information or attributes that make it unique. NFTs have become extremely popular due to their potential to revolutionize digital art, collectibles and even real estate. They provided a way to prove ownership and provenance of unique digital items, opening new revenue streams for artists and creators.
According to dappGambl, the market reached an astonishing monthly trading volume of $2.8 billion in August 2021. DappGambl notes that these digital assets not only dominated headlines but also captured the imagination of people around the world. However, DappGambl emphasizes that the current state of the market is in stark contrast to those peak moments, as it has undergone a significant transformation.
Source: dappGambl
DappGambl cites data from the Block to highlight the sharp decline in the NFT market. As of July 2023, dappGambl reports that weekly trading volume has dropped to just $80 million. DappGambl points out that this is a drastic reduction, representing just 3% of the peak trading volume recorded in August 2021. DappGambl suggests that this decline is not only notable but also unprecedented, highlighting the volatile nature of the market.
DappGambl provides in-depth analysis of the current bear market for NFTs. According to dappGambl, the market has not only experienced a downturn; it collapsed heavily. DappGambl describes the market as being in a bearish phase, characterized by a pessimistic view of the future value of numerous NFT projects. DappGambl notes that this has created a challenging environment for sellers as buyers have become increasingly skeptical and cautious.
DappGambl reveals a surprising fact that the vast majority of NFTs are essentially worthless. According to their findings, of the 73,257 NFT collections identified, a whopping 69,795 of them have a market capitalization of 0 Ether (ETH).
DappGambl’s report leaves several questions unanswered and adds a layer of complexity to the current and future state of the NFT market. According to dappGambl, it remains unclear whether there are still ‘white whales’ in the market that can land multi-million dollar deals. DappGambl also questions the long-term viability of NFTs given current market conditions. While dappGambl wants to leave readers with a sense of cautious optimism, they acknowledge that the initial market euphoria was unsustainable.
Featured image via Pixabay
