NFT market collapses, most collectibles worthless

[New Sancai Compilation and First Release] A recent study shows that 95% of NFT (Non-Fungible Token) collectibles are worthless as the market for the once-hyped cryptocurrency and digital art revolution collapses .

NFTs are the darling of the cryptocurrency world in 2021 and 2022, with monthly trading volume approaching $2.8 billion in August 2021, and reports of sales of certain NFT assets reaching millions of dollars.

But research conducted by dappGambl, a community of financial and blockchain technology experts, based on data from NFTScan (a platform for querying and tracking non-fungible tokens) and CoinMarketCap (a cryptocurrency market information platform), shows that of the 73,257 NFT collections it identified , 69,795 (95.2%) have a value of zero.

The study shows that the NFT market carries extremely high risks and emphasizes the need for thorough investigation before purchasing, especially for higher value items. This daunting reality should calm people down and avoid getting caught up in the overzealous enthusiasm for the NFT space. Despite rumors of digital artworks selling for millions of dollars and instant riches, it's easy to overlook the fact that this market is full of pitfalls and potential losses.

The study says 79% of these collections remain unsold, meaning the market is oversaturated with sellers and potential buyers are more cautious than ever before when purchasing items.

The study found that of the top 8,850 NFT collections identified by CoinMarketCap, 1,614 were worth zero. A total of 66 coins were valued at less than 1 penny, 368 were valued between 1 penny and 10 cents, 615 were valued between 10 cents and $1, and 867 were valued between 1 and $100. The vast majority (3,643) were valued between $100 and $200.

The study notes that since 13% of these collections are worthless, this reveals that "a large proportion of even the most famous collections are struggling to maintain demand."

Less than 1% (80) of the collectibles were priced at more than $6,000, "suggesting that even outstanding high-value collections are rare," the study said.

The study mentioned: “It is clear that a large portion of the NFT market is dominated by speculative and hopeful price strategies that are far removed from the actual trading history of these assets.” “In addition, these listing prices The apparent disconnect with actual sales may also mean that many sellers are waiting for an NFT craze similar to 2021 to come again, which may not happen again.”

(Compiled by: Zhang Shanyuan)

(Editor: Jiang Qiming)

(Source of the article: First published by Xinsancai)