A third of NFTs are no longer worth anything. The collapse of sales augurs the beginning of the end of the bubble

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There are already those who compare the current situation with NFTs with the explosion of the Initial Coin Offers (ICO) bubble in 2018. At that time, the cryptocurrency market realized that he was plagued by “bad apples”. A problem that is clearly reflected in NFTs, where many experts have been pointing out for months now that most of them are not worth a dime.

“Money flows too fast and meaningless,” says WhaleShark, one of the big holders of NFTs. “The similarity is uncanny,” he explains, referring to the ICO bubble. It is just one of the voices of alarm from within the ecosystem that are being produced.

NFT sales plummet 67% on OpenSea

The Nansen report we know via Bloomberg leaves a devastating fact: a third of NFTs are worth nothing and another third of them are trading below the cost of minting the tokens themselves. In other words, more than half of current NFTs are failing miserably.

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The study has analyzed 8,400 collections, for a total of 19.3 million individual NFTs, based on Ethereum and many of them traded on the OpenSea platform. Despite exceptions such as CryptoPunk or Bored Ape, which have managed to make a name for themselves, the rest of the NFTs have zero value or have simply never been sold.

The NFTs market lives on punctual holders, with investments such as that of madonna, beckham or government movements like the one in Ukraine. But the reality is that 30-day sales are down 40% from the previous month, according to Nansen. AND on platforms such as OpenSea, the largest market for NFTs, the drop is 67% in the last month.

If we look at our own OpenSea statistics, we see Bored Ape down 67%, CryptoPunks down 59% and CyberBrokers down 42%. Of the top 30 NFT projects, only Azuki has been profitable in the last month. All the others have dropped considerably with huge percentages.

It turns out that NFTs can also be stolen: a phishing takes $1.7 million from OpenSea

This fall cools market expectations, although the bursting of the bubble does not seem so clear. Gauthier ZüppingerNonFungible.com analyst talks about “stabilization”pointing out that in sectors such as gaming there is still a moderate demand.

If in February the NFT market reached 284 million dollars in daily trading volume, in March it fell 80% to 50 million dollars, According to the Financial Times. Even so, the monthly global volume is still around 2.6 billion dollars. A still considerable figure.

At the beginning of the year the average value of NFTs stood at about $6,900. Now it is in about 2,000 dollars, according to the tracker nonfungible. A significant drop in value that also shows how the bubble has passed.

These falls are also being reflected in some sales, where buyers are already selling at a loss. It is the case, which explains fortunefrom a buyer of a Bored Ape Yacht Club that sold for $224,000, losing about $68,000 since January.

According to the data in the Nansen report, the number of buyers of NFTs peaked in February and although there are still some collections, they conclude that the general public is no longer interested in the vast majority of them.

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There are already those who compare the current situation with NFTs with the explosion of the Initial Coin Offers (ICO)…

There are already those who compare the current situation with NFTs with the explosion of the Initial Coin Offers (ICO)…

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