According to a new study, more than 95 percent of NFTs created are now worthless — and many of the most hyped are down more than 95 percent from last year.
Out of 73,257 NFT collections identified by a crypto site survey dappGambl69,795 of these have a market capitalization of zero.
According to the study, approximately 23 million people own the worthless assets in these collections.
And even among the 8,850 most valuable NFT collections, as measured by market capitalization, 18 percent of NFTs were found to be worthless, and 41 percent cost between $5 and $100.
In January 2022, Justin Bieber bought a ‘Bored Ape’ NFT for about $1.3 million, but it’s now worth about $37,000 — down 97 percent. Others have gone from tens of thousands of dollars to less than ten.
A monkey NFT (pictured) purchased by Justin Bieber is down about 97 percent. He and other celebrities are being sued by investors who claim they were tricked into buying them by celebrities who failed to reveal they were paid to boost sales
In January 2022, Justin Bieber (pictured in June) bought a ‘Bored Ape’ NFT for about $1.3 million, but it’s now worth about $37,000
Works of art, for example ‘Winter Bear #1178’ once sold for over $35,000 in 2021. Now it’s worth about $6.50.
Another NFT – titled ‘GOOP 7803’ is currently worth about $0.50.
NFTs are digital collectibles that are often linked to online art pieces. Between 2021 and 2022 there was an NFT gold rushbut the craze seems to be over.
At its peak in January 2022, the NFT marketplace saw a monthly trading volume of approximately $5.36 billion, according to data from Het Blok. In August, total volume was just $410 million – less than 8 percent of peak volume.
“This terrifying reality should serve as a sobering check on the euphoria that often surrounded the NFT space,” the study authors wrote.
“Amid stories of digital works of art selling for millions and overnight success stories, it’s easy to overlook that the market is full of pitfalls and potential losses.”
Musician Madonna was another celebrity who got in on the action. She purchased another Bored Ape NFT in March 2022 for approximately $470,000. The highest bid placed on it in recent months was around $50,000 – a drop of 89 percent.
Nevertheless, it is part of one of the most sought-after NFT collections ever created, which consisted of 10,000 cartoon images of monkeys.
Winter bear #1178 from the Winter Bears collection was once sold for more than €35,000 in 2021. Now it is worth about €6.50
This GOOP 7803 from the GOOP TROOP collection of NFTs is currently worth about $0.50
Jay-Z bought a CryptoPunks NFT for around $130,000 in April 2021
In August, investors in Bored Ape NFTs, including Paris Hilton, Justin Bieber and Madonna, sued auction house Sotheby’s, alleging that they deceptively promoted the NFTs to manipulate the price of the assets, according to a lawsuit.
Another very popular NFT collection was CryptoPunks. Although they still trade for around $70,000, they once sold for at least around $300,000. Jay-Z bought one in April 2021 for around $130,000.
While the research suggests that NFTs could be experiencing something of a revival, it found that 79 percent of all NFT collections are now unsold, and the glut of supply has created a buyers’ market.
However, the research did suggest that NFTs will have some real-world use in the future, including for gaming, real estate and digital identity.