Do you remember the phase that we went through having big bodybuilders on Instagram create a podcast and speak about NFTs (non-fungible tokens)? Well, I have good news, this phase has come to an end? Apparently, all those NFT red flags we were fluttering were actually trying to tell you something.
Call it a warning from the beyond.
“Dead NFTs: The Evolving Landscape of the NFT Market” is the latest report on dappGambl, a community of financial and blockchain experts. While analyzing 74,257 NFT collections, authors discovered that 69,795 are of zero Ether (ETH) at market cap. ETH is digital money and it’s the currency of Ethereum applications. ETH is second to Bitcoin as the most popular cryptocurrency. In simplified English, this means 95% of the NFTs wouldn’t get a whiff of a penny – there’s a catastrophic crash in the assets that hit a trading volume of $17 billion amongst the market in 2021.
What has increased is the supply of whitewashed demand for NFTs. 21% of the collections in the study claim complete ownership, in other words this means that four out of every fifth collection is unsold. As buyers are becoming more aware of the NFT red flag situation, the report states, “projects that lack clear use cases, compelling narratives, or genuine artistic value are finding it increasingly difficult to attract attention and sales.”
Although NFTs had their moment of fame, which by the way I am still looking for mine, were sold for the equivalent of millions of dollars in crypto currency, but today none are of that same worth. Under one percent of NFTs are listed at more than $6,000, the load of the most expensive collections today are priced between $5 to $100.
At dappGambl, the researchers state that we might not get to see NFT boom again the way it did back in 2021-2022. the assets are on the right pathway towards extinction.
On another note, one reason that may or may not address the crash of NFTs is, while NFTs were at their positive phase in life, they had a negative impact on the environment. NFTs required the usage of high energy, where the markets that it was sold in involved computer usage which emitted significant carbon footprint. At an estimation of 200,000 NFT collections, have no owners or market share. The equivalent of 200,000 NFTs emit carbon emissions is 2,048 houses or 3,531 cars.
To those of you who told me the future is Crypto, I hope you’re reading this and paying more attention to the NFT red flags!
Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Tech sections to stay informed and up-to-date with our daily articles.