Nft market collapse

nfts worthless

Tens of thousands of NFTs that were once deemed the newest rage in tech and dragged in celebrities, artists, and even Melania Trump have now been declared virtually worthless.

According to a new report by dappGambl that reviewed data from NFT Scan and CoinMarketCap, 69,795 out of 73,257 NFT collections have a market cap of 0 Ether, leaving 95% of those holding NFT collections – or 23 million people – with worthless investments.

NFTs, or non-fungible tokens, are a form of crypto asset that is used to certify ownership and authenticity of a digital file including an image, video, or text.

The report comes nearly two years after the craze for NFTs swept up celebrities and artists alike, with many rushing to purchase NFT collections of the Bored Ape Yacht Club and Matrix avatars

Are nfts dying？

In 2021, NFTs stormed into the crypto industry like a hurricane, transforming into a goldmine for almost everyone who touched it. Minting overnight millionaires with what many called ‘on-chain jpegs,’ the speculative frenzy led most to anticipate the asset class exploding much like memecoins today, resulting in its market swelling to billions– but not for long.

After weathering a tumultuous two-year bear market and with the dust settled, a sobering realization emerges: people are losing interest in NFTs.

After analyzing over 73,000 NFT collections with a combined trading volume of $17 billion, the report reveals a staggering reality: 95% of all NFT projects, totaling over 69,000 collections, held zero market value .

The decline can be attributed to the NFT markets dwindling trading volume, which has plummeted 97% since its peak in 2021. Adding to the gloom, the once-thriving market, renowned for generating millions per sale through collections like CryptoPunk and Bored Ape Yacht Club, now struggles to generate even hundreds.

nft future

The crypto market has been through the wringer, emerging from an enduring bear market worsened by international conflicts and contagion events like the FTX fiasco. Lingering scars from the past two years have yet to heal.

While the industry has garnered significant favor and attention from institutions, leading to its historic run earlier this year, global macroeconomic and geopolitical uncertainties continue to cast a shadow over investor confidence.

Many find themselves on the edge of their seats, analyzing each candle, anxiously awaiting the official start of the bull market signaled by the US first rate cut in two years.

While some investors have already plunged into memecoins, reaping astronomical gains amidst the frenzy, the NFT market lies dormant, poised for resurgence once market conditions stabilize.

NFTs are inherently speculative and entail considerable risk. Given the market‘s tumultuous performance over the past two years, it’s not an appealing investment choice. However, the market could regain its lost valor once retail investors reenter the fray and reallocate funds from low-risk to high-risk assets.

Are nfts worth anything？

The market for non-homogenized tokens appears to be a flash in the pan. The asset class peaked at $21 billion in May 2022 before falling back down. More than 95% of the NFTs created during the 2021-2022 NFT boom are now worthless.

On closer inspection, the picture is different. Today, NFTs have a market capitalization of $10 billion, with 5% of them retaining a high percentage of their value. The top ten artists' collections, with a combined value of $2.5 billion, have a retention rate of 73% of what it was a year ago.

In contrast, Modern art sales were $3.1 billion last year, 67% of their all-time high. Over the past decade, total sales have declined by 12% in 2022, 31% in 2022, 31% in 2019 and 43% in 2016. This volatility is a feature of the broader art market, which is sensitive to fluctuations in the wealth of high-net-worth individuals. Sales typically fall sharply in one year and then rebound the following year, much like the stock market.

Despite its current decline in market capitalization, NFT is rapidly gaining ground in the art industry. Headline sales continue, such as CryptoPunk 5066, which recently sold for $1.5 million, and both Sotheby's and Christie's have created dedicated digital asset teams and hosted NFT sales. Meanwhile, several museums are incorporating NFTs into their permanent collections, including the Pompidou Center, the Los Angeles County Museum of Art, and the Museum of Modern Art in New York.

The best measure of the durability of the NFT market comes from the art mortgage market.

In 2022, outstanding loans secured by traditional art totaled $27 billion to $31 billion. Private banks such as Goldman Sachs and Morgan Stanley Morgan Stanley, auction houses such as Sotheby's, and specialty firms such as Borro and Athena offer loans. Lenders typically offer loans of up to 60% of fair market value and charge interest rates of 6-10%, Deloitte says. These are multi-year loans, which means the financier believes the artwork will retain its value over time.

The NFT market has fallen sharply since peaking in 2022, but the bottom appears to have passed. Recent sales indicate that the market is stabilizing, with works by top artists now worth billions of dollars. This dynamic is common in new markets, such as the internet bubble of the 1990s and the cryptocurrency initial token offering boom of 2017. While most entrants were eliminated, the highest-quality projects survived and prospered. The NFT market has followed a similar path. Serious artists continue to create thoughtful NFT, while the medium solidifies its place in the global art market. As this trend continues, mainstream interest in NFT is expected to grow.

Are NFTs secure？

Purchasing an NFT from a reputable marketplace is generally considered safe because NFTs are stored in crypto wallets and rely on blockchain technology. However, buyers and owners of NFTs still need to consider several potential security risks. The two biggest threats are phishing attacks and malware infections.

Justin Bieber NFT loss

Take a Bored Ape NFT owned by Justin Bieber. For example, its value has dropped by about 95% in the past year and a half.

In January 2022, the Grammy Award-winning music artist entered the world of NFTs when he reportedly invested 500 ETH (about $1.3 million at the time) in Bored Ape #3001, an NFT belonging to Yuga Labs' Bored Ape Yacht Club (BAYC) series.

But as of July 2023, Bieber's Bored Ape is only worth around $59,000, according to Bitcoinist.

what happened to NFT？

The NFT hype cycle has well and truly died as of April 2024. The initial buying spree in 2021 was driven more by the potential for quick profits than by the actual value of the NFTs themselves. As the market became more crowded, the value of NFTs plummeted.

The value of NFTs is often tied to the value of cryptocurrency, especially Ethereum. As the crypto market went through a downturn, so did the buying power for NFTs. This, paired with the decline of digital spaces like the metaverse, has meant that people simply are no longer interested in the digital token business.

Many NFTs purchased for high prices in 2021 are now worth a fraction of what they were originally sold for, with reports suggesting that a large percentage of NFTs have become virtually worthless.

what does nft stand for

nfts examples

1.Nyan Cat is a remarkable artifact of the internet of the 2010s. For its tenth anniversary, the videos creator decided to turn it into an NFT and auction it off. The video was sold for a whopping 300 ETH, which is equivalent to about $852,300 at the moment of writing.

2.Jack Dorsey, ex-Twitters CEO, sold the very first tweet on the platform (made on March 21, 2006) for nearly $3 million as an NFT.

Dorsey mentioned that the money raised from the NFT sale would be converted to Bitcoin and then donated to a charity organization called GiveDirectly, which distributes cash to people living in poverty.

3.Sports Collectibles: NBA shots

Top Shot is an NFT marketplace where basketball fans can buy, sell, and trade NBA moments. So far, the most expensive collectible trade is LeBron James dunking against the Houston Rockets, which was sold for over $387,000.

4.CryptoKitties are similar to Pokemon cards, with one crucial difference—theyre based on the Ethereum blockchain. This is arguably the first NFT project that has seen overwhelming adoption—and it happened in 2017. Essentially, it was the first blockchain-based game.

popular nft

nft value chart

bored ape nft price

What is the Bored Ape Yacht Club？

Bored Ape Yacht Club (BAYC) is an NFT collection. Bored Ape Yacht Club (BAYC) price today is $48,564, with a 24-hour sales volume of 358.48 ETH. As of today, there is a total of 9,998 NFTs minted, held by 5,459 unique owners, and has a total market cap of $485,540,163.

What Is the Bored Ape Yacht Club NFT Collection？

The Bored Ape Yacht Club is a collection of 10,000 unique Bored Ape NFTs showcasing a series of apes with different characteristics and expressions.

Often the face of NFTs, the BAYC collection is one of the most well-known NFT collections, with many celebrities holding the collection. Some of these celebrities include Justin Bieber, Eminem, Serena Williams, Stephen Curry, Shaquille ONeal, and Jimmy Fallon. Celebrities and investors were not the only ones interested in the collection, even big corporate companies like Adidas purchased their own Ape.

Launched in April 2021, the project was available for mint at 0.08 ETH and was sold out within 12 hours. Less than 2 years later, the most expensive ape was sold at an astounding 3.4 Million USD.

how much is a NFT

The current value of 1 NFT is USD 0.01. In other words, to buy 5 NFT, it would cost you USD 0.07. Inversely, USD 1.00 would allow you to trade for 69.08 NFT while USD 50.00 would convert to 3,454.17 NFT, not including platform or gas fees.

In the last 7 days, the exchange rate has increased by 29.82%. in the last 24 hours, the rate has changed by 29.82%, which means that the highest exchange rate of 1 NFT to the United States Dollar was 0 USD and the lowest 24-hour value was 1 NFT for Infinity USD. This time last month, the value of 1 NFT was USD 0.02, which is a 29.82% increase from where it is now. Looking back a year, NFT has changed to USD 0.01. That means that in a single year, the value of NFT shrank by 29.82%.

floor price nft

An NFT floor price is the lowest sale price that an NFT will sell for from the collection it's in. This floor price is updated in real-time depending on what NFTs are being sold in the collection or that have been added as a listing.

NFT floor prices are important because NFTs can often be challenging to value. They're not like other traditional assets and due to the nature of them being relatively new to the market, there's no definitive guidebook on how much you should be charging. To give some basis to understand popular NFT art collections and NFT floor prices, it's important to remember the foundation on which these art collections lie.

Unlike fungible tokens such as Bitcoin, which can be divided into smaller parts of the whole called Satoshis (Sats, for short), an NFT, or non-fungible token, is a digital asset that cannot be split or shared from its whole. They are unique or of limited quantity, a factor for NFT floor pricing referred to as NFT rarity.

Elements of the NFT world that have gained widespread notoriety and media attention are rare art collections. While well-known collections like Hashmasks and Bored Ape Yacht Club were not the first movers and shakers in the NFT art space, theyve rapidly become the most famous through their crazy floor and sale prices.

How is the Floor Price Calculated？

Floor price is a term that's typically used by economists to determine how low the price can go for certain goods, commodities, and more. However, as the NFT market grows, so too does the consensus around how these tokens are calculated. The NFT floor price is a sale price that's cheaper than all the other sellers within the same NFT project. This means the floor price is calculated as the lowest price an owner wants to sell for.

Numerous factors contribute to the NFT floor price including which NFT collection it‘s part of as well the overall NFT market, in general. For example, let’s examine how a floor price for a collection like the popular Bored Ape Yacht Club is calculated. With every NFT in the collection being unique, each has different attributes that may make it more rare and valuable than others. This means some will inevitably be worth more than others when it comes to a sale price, thereby setting your NFT floor price. The floor price can fluctuate, but it should be a guide for sellers and buyers on how much NFT could sell on the market.

nft marketplace size

According to Zion Market Research, the Non-Fungible Token (NFT) Market Size was valued at $36.12 billion in 2023 and is projected to reach $217.07 billion by the end of 2032, showing a compound annual growth rate of around 22.05% from 2024 to 2032

Non-fungible token is blockchain-based cryptographic assets having unique identification codes and metadata that distinguish them from one another. They cannot be traded or swapped at parity with cryptocurrencies. This is in contrast to fungible tokens, such as cryptocurrencies, which are identical to one another and can thus be used as a medium for commercial transactions.

NFT, or non-fungible tokens, became a big digital topic in 2019, encompassing trading cards, digital artwork, animal pictures, music, and online gaming. In March 2021, Beeple's crypto art “First 5000 Days” sold for USD 69 million and became the world's most expensive NFT. This transaction sparked an NFT fever and started trending on Google across Asia and the US. However, digital tokens are not new. CryptoKitties, a project that integrates randomly generated photos of kittens, is one of the most established NFTs, with sales dating back to 2017. The number of sales using non-fungible tokens (NFTs) in the art industry fluctuated dramatically between April 15, 2021, and April 15, 2022. Approximately 28,400 NFTs were sold under the art segment in the past 30 days as of April 15, 2021. On the other hand, 22,600 NFTs were sold on the Ethereum blockchain over 30 days as of April 15, 2022. But in mid-August 2021, the number zoomed to 109,1000.

nft values over time

NFTs gain value when buyers can successfully sell their NFTs at a higher price than what they paid for them. Similar to cryptocurrency, a collection of NFTs go up in value when the market demand increases and the overall supply of NFTs available for sale decreases. The key factor here is that someone has to be willing to buy the NFT at a higher price. So basically, an NFT is worth whatever someone is willing to pay for it.

Buyers determine the value of an NFT by looking at the market of a collection. For example, the floor price of a Bored Ape NFT is currently about 73.5 Ethereum on OpenSea. A year ago when they were first minted, they weren‘t even selling for 1 Ethereum. That’s a pretty obvious example, but you get the idea.

Most NFT marketplaces have tools and statistics to help determine the market activity and value for specific NFT collections. Tools like DappRadar will show you aggregated stats where you can see the total trading volume for the top NFT collections across several marketplaces.

Below are the factors on how your NFTs will increase in value.

1.Crypto Volatility

The value of cryptocurrencies can increase and decrease within minutes. Sales volume can spike, and drop off very quickly. If you‘re evaluating an NFT purchase, you should be looking at the volatility of the NFT collection, marketplace, and cryptocurrency. Here’s a scenario:

The value of Solana peaked at USD 258 in November 2021, and its currently worth $32 (as of September 8, 2022). So if you bought an NFT in November 2021 for 5 SOL and you wanted to sell it today, you would need to sell it for 41 SOL to make a profit.

On the other hand, if you had bought an NFT for 5 SOL in October 2021 when Solana was trading for $23, and you wanted to sell it for 5 SOL today, you would make a $160 profit (as of September 8, 2022). This shows how volatile cryptocurrencies are, and NFTs add another layer of volatility to the equation.

that‘s not necessarily a bad thing. Let’s say you bought an NFT for 5 SOL when it was trading for $23 and you wanted to sell it today, but the floor price of your NFT is 15 SOL. If you combine that with the increased value of Solana, you can make a decent profit.

So the main point is, that the gains can be bigger, and so can the losses.

2.NFT Hype

Hype is a driving force behind the value of an NFT. Collections that have built up a lot of interest can often charge a premium even right after minting.

When Logan Pauls NFT collection launched, it had so much hype around it that it sold $1 million worth of NFTs in 30 minutes and $3.4 million on the first day. The project was soon accused of ripping off Adobe stock photos and the project has been in hot water since then.

3.Market Speculation

Overall, NFTs and cryptocurrency are a game of speculation. That doesn‘t necessarily make NFTs a poor investment choice, though. It just means you need to do your research and make informed decisions. If you’re comfortable navigating through market volatility you can buy and sell NFTs and make profits.

That doesn‘t mean that profit is guaranteed though. You can lose money on an NFT. If you’re considering buying NFTs you should talk to an expert that is well-versed in the world of NFTs and cryptocurrency before having any investments.

4.Rarity

A one-of-a-kind and rare NFT can turn into a valuable assetinvestment. Yes, it is also important to consider who is the creator behind the NFT. It can either be a public company, a recognizable artist, or even a brand that people flock to.

Think of it that NFTs are tied to something (or someone) appealing. It would be more coveted than an NFT thats done by an unknown creator.

Top nft collections

An NFT collection is a limited-edition digital art collection made up of unique, cryptographic tokens, each with their own individual traits, issued by an artist or group of artists.

Bored Ape Yacht Club

Bored Ape Yacht Club is an NFT collection of 10,000 vibrant, funky primates that serve as passkeys to exclusive benefits. The most expensive simian, sporting a sailor cap and laser-beamed eyes, sold for $2.9 million in 2021. Online crypto publication Decrypt has dubbed Bored Ape as the “Celebrity NFT of Choice” as more collectibles land in the hands of holders such as Madonna, Shaq, Eminem and Snoop Dogg.

Azuki

Developed by Los Angeles-based startup Chiru Labs, Azuki is a 10,000-character collection that features anime-styled NFTs. They are most commonly used as profile picture NFTs, or PFP NFTs, which help users establish how they want to be represented in Web3. Additionally, the acquisition of an Azuki renders access to “The Garden,” an exclusive virtual collective where artists, builders, and metaverse-minded folks can collaborate on Web3 projects.