You told people what an NFT was and they looked at you weird. Normal. How could an NFT of a tweet be worth 2.9 million euros? What was the PNG like for a rock worth 260,000 Euros? Two years ago this did not make much sense, now logic seems to have prevailed, because these NFTs have no or almost no value: the market has crashed and is mortally wounded.

The first tweet is a good portrait of the NFT market. Twitter co-founder Jack Dorsey seemed confident that this was the future and sold an NFT of the first message on Twitter (published on March 21, 2006) for 2.9 million euros. Just a year later the buyer tried to sell it for $48 million. Do you know what the best offer he ever got was? One is $280.

NFTs are crashing. This is a good reflection of this entire episode. A report by dappGambl, which includes NFT Scan and CoinMarketCap data, reveals that out of a collection of 73,257 assets analyzed by researchers, 69,795 (just over 95 percent) have zero ETH.

23 million users affected. According to the report’s estimates, approximately 23 million people own these worthless NFTs. As the study authors explain, “this discouraging reality should serve as a brake on the enthusiasm that often surrounds the NFT space.”

A fire that comes and goes. These digital assets, often representations of artistic works or collectibles such as the famous Bored Ape Yacht Club and recorded on a blockchain, became a phenomenon in 2021 and are a part of 2022. Everyone wanted to sign up and was touched by the excitement of this new Gold. companies and industries of all kinds, including the arts industry.

So much supply for so little demand. dappGambl’s research reveals that 79% of all NFT collectibles have not made a single sale, and this oversupply has created a market where buyers have failed to rekindle interest in this technology.

Source: dappGambl

NFTs that have a value have very little value. Of the 8,850 collections with the highest value by market value, 18 percent have no value and 41 percent are worth between $5 and $100. Less than 1 percent are priced at more than $6,000, which is quite striking considering that two years ago it was normal to find NFTs worth over a million dollars.

Signs related to speculation. In the report, those responsible for dappGambl emphasized that “it is clear that a significant part of the NFT market is characterized by speculative and promising pricing strategies that are far removed from the real trading history of these assets.”

Surrender. Bloomberg recently noted that transaction volume with NFTs dropped by 81% between January 2022 and July 2023, according to DappRadar. Prices of assets such as Bored Ape Yacht Club or CryptoPunks have been at minimum levels in the last two years. and the industry’s own supporters have made it clear: “What you are seeing is capitulation.” OpenSea, one of the largest markets, happened moving to a discretionary commission model to try to incentivize operations.

I’m waiting for a miracle. In fact, at dappGambl, they conclude that this disconnect between displayed prices and actual sales indicates that many sellers are waiting for a miracle: a miracle that, as in 2021, will cause a brutal resurgence of interest in NFTs. “It may never happen again,” the report said.

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