Almost all NFTs in existence are now worthless, a new study has revealed.
In fact, the percentage of NFTs that are worth literally zero dollars is quite shocking.
The sentiment around Non-Fungible Tokens (NFTs) has changed over the past two years, and most people know the market has gone down.
However, the study sheds light on the true scale of the NFT disaster.
The study was conducted by dappGambl, a company that specializes in blockchain-related gaming and finance.
Upon analysis of over 73,000 NFT collections, the researches found that 69,000+ of these collections have a market cap of zero dollars.
Translated, this means that over 95 percent of all existing NFTs are worth nothing.
Things don’t look any better when you get closer to the top of the list.
Even top-tier NFTs are worth between $5 and $100, and you need to get the top one percent to find tokens worth four figures or more.
Some might say that is still a lot of cash for an ‘expensive JPEG’, which is the expression critics have often used to describe NFTs.
There may be an element of truth in that, but let’s not forget some of these NFTs were worth millions when the market peaked in 2021.
During the NFT boom, celebrities wanted in and spent seven figures on NFTs from the Bored Ape Yacht Club collection.
Madonna, Justin Bieber, Eminem and Neymar Jr. spent huge amounts on NFTs and lost at least 90 percent of their investment.
Justin Bieber purchased this Bored Ape #NFT in January 2022 for $1.31M.
Today it’s worth $36,800. pic.twitter.com/nLlJDHoR3S
— Valerie’s Crypto Hub 🔶⚡️ (@valeriehub_) September 14, 2023
And then there’s the famous case of Sina Estavi, a crypto investor who spent $2.9 million on an NFT version of Twitter founder Jack Dorsey’s first-ever tweet.
Last time he tried to sell it, the opening bid was $1.
Even though things look bleak at the moment, NFTs might be able to survive due to some use cases that the underlying Blockchain technology may offer.
Music stars like Justin Bieber, Rihanna and David Guetta, for example, are now offering NFTs of their hit songs.
After buying Justin Bieber’s music NFT, I became more interested. In a world full of art NFT, I believe that someday this music NFT will also shine@JustinBieber#JustinBieber pic.twitter.com/Nur3nrMRNn
— supergna.ethッ🛡️ 💎⚡️ (@son_gna) September 19, 2023
And here’s the kicker, each NFT represents partial ownership of the music streaming rights for the song.
In other words, if you own one of these NFTs, you get paid every time somebody streams the corresponding song on Spotify, Apple Music, etc.
You’re probably not going to get rich doing this, but it’s a good example of what NFTs can (still) do.