The NFT seemed to be the new artistic and financial Eldorado. It had a dazzling start, but its end promises to be just as brutal. The dappGambl platform distributes data which is clearly not synonymous with the good health of the sector. Is this really the end of NFTs?
NFTs (Non-Fungible Tokens) are not works of art, but unique digital assets, verified on a blockchain. Two years ago, interest in these was at its peak, some were worth up to several tens of millions of dollars.
All this commotion will not last long, and this speculative bubble linked to cryptocurrencies is about to be torn apart. The indicators were already not looking good for NFTs at the end of September, but the sector continues to plummet, and the figures are hard to see.
The great collapse
The data compiled by the dappGambl site is very clear: 95% of NFTs are no longer worth anything. After an analysis of 73,257 different collections of NFTs (data from NFTScan and CoinMarketCap), 69,795 of them now have a value equivalent to… 0 ether. (ETH). The main cause is the significant rise in interest rates. This increase has dried up funds for certain assets, particularly cryptocurrencies, categorized as hyperspeculative. Hence a domino effect on NFTs.
Boosted by AI, the production of NFTs has increased so much that the market found itself in a situation of extreme overproduction. Supply has become far greater than demand, so the sales volume is collapsing violently. Of all the tokens generated, 79% were never sold. DappGambl estimates that there are around 23 million NFT holders who own assets with no value.
“Top NFTs” also in the sauce
A few collections of NFTs still remain popular with buyers: around 8,850. But even in this higher category, very few still retain an interesting value. 18% of them are no longer worth anything at all, and 41% of the NFTs at this top of the basket have a value ranging between 5 and 100 dollars. The most valuable ones go up to $6,000, and they only represent a ridiculous 1% of the total sum of these NFTs. We are very far from the crazy sums of 2021, and the general disinterest is more than obvious.
Even if the dappGambl site tries to be reassuring by explaining that it is possible that certain NFTs still have a role to play, in the world of luxury, art or video games, it is difficult to believe it. The cheese soufflé rose as quickly as it fell, and NFTs will almost certainly be a distant memory in a few years. Apart perhaps for their carbon footprint: the NFT market still generated 16,243 tonnes of CO2.
Source : The echoes
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