In recent years, many have never tired of saying that NFTs were the future and that they were an easy way to become a millionaire. How did that turn out? Not good at all. In fact, new information suggests that NFTs are practically dead.
According to a report by dappGambl made with information from NFT Scan and CoinMarketCap, NFTs have lost most of their value after their hype cycle ended. There they analyzed 73,257 collections and discovered that just over 95% (that is, 69,795 of them) lost all their value.
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This means that approximately 23 million people now own NFTs that are not worth even $1 MXN. The above also translates into significant losses for all those people who invested a good amount of money in NFTs hoping to get an asset that would appreciate over time.
“With stories of digital art pieces selling for millions and overnight success stories, it is easy to forget the fact that the market is full of pitfalls and potential losses,” the research notes.
It is worth mentioning that the outlook does not look very positive either if we remove from all the collections that never enjoyed success. 18% of the 8,850 collections that reached a higher cost are now worth $0 USD. Additionally, 41% have a value between $5 and $100 USD.
Finally, only 1% of NFTs have a price higher than $6,000 USD, a figure that is far from the millions they reached years ago. Without a doubt, this is a bad time to own an NFT.
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What is an NFT?
In case you’ve been living under a rock and missed the NFT craze, here’s what it’s all about.
NFTs are images that are tied to the blockchain, usually Ethereum. Each NFT is unique because it has a signature that is impossible to duplicate. This artificial scarcity combined with enormous hype caused several of these collectibles to reach a stratospheric price.
At its peak, the NFT market is said to have been worth $2.8 billion in monthly trades. In addition, pieces from the most valuable collections – such as Bored Ape Yacht Club – cost millions of dollars.
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Yes, something like that was worth millions of dollars.
It is worth mentioning that some NFTs offered some extras, such as invitations to events or access to exclusive merchandise. That said, many only bought them on mere speculation, hoping to become millionaires overnight.
While there is always the possibility that the NFT hype will return and its value will recover, it is something that seems complicated. Thus, we may be witnessing the last moments of NFTs as we know them.
What do you think about this new? Have you ever bought an NFT? Tell us in the comments.
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