- According to recent findings, 95% of NFTs have no value whatsoever.
- Weekly NFT volume has fallen from a peak of 1 billion to around 70 million.
The decline of non-fungible tokens [NFTs] The aftermath of the 2021 boom has been a popular topic of discussion, but the true extent of this decline has remained somewhat elusive.
Nevertheless, recent research has shed light on this issue, showing that as many as 95% of NFTs currently in circulation have no significant value. How does this grim statistic compare to the total volume and number of traders actively participating in this market?
More than 90% of NFTs have no value
From a recent study conducted by dappGambl, which analyzed a dataset of more than 73,000 NFTs, made a striking discovery. Their findings showed that a whopping 69,795 of these assets had a market capitalization of exactly 0 Ethereum. [ETH]. This meant that approximately 23 million individuals held NFT investments without any value.
Furthermore, the research found that only 21% of these collections had achieved 100% ownership. This also highlighted an oversupply of NFTs in the market and a corresponding lack of demand.
These survey results were in stark contrast to the NFT market’s peak performance. During this time it had a total value of billions of dollars.
NFTs have gained significant attention and popularity in the art world, where digital artists have sold their works for significant amounts of money. However, they are also used in gaming, music, virtual real estate and other digital and creative industries.
Are top NFT collections doing better?
The study also delved into the top NFT collections, showing that these were not faring any better. An alarming 18% of these top collections had a floor price of zero, highlighting that a substantial proportion of even the most renowned collections were struggling to maintain demand.
Additionally, 41% of leading NFTs were modestly priced between $5 and $100, possibly indicating a perceived lack of value in these digital assets.
Amazingly, less than 1% of these assets had a price tag of more than $6,000, shedding light on the rarity of high-value assets even among the elite of NFT collections.
Further data from Dune Analytics provides insight into the performance of the best ever NFT collections by volume, revealing that only six have managed to surpass the remarkable milestone of $1 billion in total volume.
However, an examination of their 30-day trading volume painted a different picture, showing a rather lackluster performance. At the time of writing, the highest 30-day trading volume observed among these top collections was approximately $9.5 million, while the lowest was approximately $560,000.
Comparison of key statistics during the peak period
Data from Dune Analytics painted a vivid picture of the trajectory of the NFT market. NFTs had a robust start and peaked in 2022.
Weekly volume data showed that even during the peak, the lowest weekly NFT volume exceeded a staggering 490 million, surpassing the 1 billion mark on several occasions.
However, when the decline began, the highest weekly volume in February 2023 was approximately 642 million. At the time of writing, weekly volume had shrunk to approximately 70.2 million.
Source: Dune Analytics
Furthermore, the number of weekly transactions was another metric that underscored the NFT market’s decline. While this number remained substantial in 2023, it has declined significantly since then.
Average weekly trading volume remained stable at around 500,000 until April, but had fallen to around 100,000 at the time of writing.
Moreover, the number of traders witnessed a sharp decline, according to the weekly traders chart on Dune Analytics. During the NFT craze, the chart showed an average of over 150,000 participating merchants.
However, at the time of writing, the number of weekly traders had fallen to 47,800, highlighting the significant reduction in market participation.
Source: Dune Analytics
End of the road for NFTs?
We may indeed be witnessing an evolution in the world of NFTs. This evolution may entail a redefinition of their usefulness and a broadening of their use cases beyond just profile pictures (PFPs).
As the technology matures and new applications are explored, they could find themselves at the center of several industries. This could potentially unlock new and exciting possibilities for makers and collectors alike.
