An anonymous reader shares some news: A report from dappGambl based on data provided by NFT Scan and CoinMarketCap showed that out of 73,257 NFT collections examined by researchers, 69,795 of them, or just over 95%, had a market cap of zero ether. According to their estimates, almost 23 million people hold these worthless assets. “This daunting reality should serve as a brake on the euphoria that has often surrounded the NFT space,” the researchers said. “Amidst the stories of digital artwork selling in the millions and overnight success stories, it’s easy to forget the fact that the market is fraught with pitfalls and potential losses.”
NFTs are digital representations of art or collectibles linked to a blockchain, usually Ethereum, and each has a unique signature that cannot be duplicated. In 2021 and 2022, the NFT market saw a huge surge, at one point leading to $2.8 billion in monthly trading volume. At that time, popular collections such as Bored Apes and CryptoPunks were selling for millions of dollars, and celebrities such as Stephen Curry and Snoop Dogg were participating in the hype. The boom coincided with the cryptocurrency’s peak, when bitcoin was trading at nearly $70,000. On Wednesday, the crypto price stood just above $27,000. The dappGambl study shows that 79% of all NFT collections currently remain unsold and that excess supply over demand has created a buyer’s market that does nothing to reignite enthusiasm.