Were NFTs merely a transient trend? Merely two years after the remarkable surge in 2021 of these "non-fungible tokens," which have successfully permeated the art market and even infiltrated museum collections, a recent study has already documented their decline... And that is vertigo.
Utilizing several databases such as NFT scan and CoinMarketCap, DappGambl ( Crypto gambling made easy ), a team of cryptocurrencies and crypto-investment specialists, has thoroughly examined 73,257 NFT collections spanning several domains. The outcome is disastrous: some 95% of them have become devoid of value. Stated differently, a staggering number of over 23 million individuals would have undertaken no investment and suffered financial losses.
Approximately 1% of the leading NFTs would command a price exceeding $6,000.
Based on the research, 79% of these collections are currently inaccessible to purchasers. Ultimately, the weekly market capitalization of NFTs reached $80 million in July 2023, representing a mere 3% of their highest point in August 2021.
No improvement is being observed at the upper end of the range. As an illustration, 18% of the total 8,850 top-tier NFT collections would be valued at "a floor price of zero." Moreover, 41% of these super-NFTs would possess a value ranging from $5 to $100, while less than 1% would achieve a price exceeding $6,000.
The authors of the study analyse that this circumstance underscores a significant imbalance, with an over supply in comparison to actual demand. “While NFTs have brought about a novel and groundbreaking ownership paradigm, this serves as a clear reminder of the highly speculative and unpredictable character of this market.”
Complicating the issue, DappGambl highlights the significant carbon footprint associated with these digital assets. It claims that there are 195,699 collections of NFTs without any identifiable owner or market share. However, the energy needed to convert these NFTs into cash results in the emission of approximately 16,243 tonnes of CO2, equivalent to the yearly emissions of 3,531 cars.
Indeed, is this the demise of NFTs? "Notwithstanding the gloomy outlook, NFTs retain a role in our future," the scientists contend. What is the issue? These assets have been excessively valued by the media and speculators, but the majority lack sufficient appeal. The work must possess either a tangible usefulness, such as the digitization of a cultural item that is at risk or has been lost, or a historical significance, such as a first edition, or a genuine creative worth. Simply put, more substance...
seen in France
Commenti