NFTs were all the rage for a very short time in recent years, but it seems that interest in them has dwindled to nothing. The system meant to democratize digital art has every indication that it has been a failure.
NFT digital properties or non-fungible tokens are in freefall, as shown in a recent study by DappGamble, a site specializing in cryptocurrencies and cited by Le Figaro. Although they were only popularized in 2021, a few years were enough for 95% of them to be worthless at the moment. They simply don’t attract investors anymore.
The death of NFTs, officially confirmed
No fewer than 73,000 NFTs were analyzed for the aforementioned study, but “many projects are now struggling to find buyers, with the market pessimistic about their future value.”
One of the resounding casualties of the new NFT reality was Twitter founder Jack Dorsey’s first tweet. About two years ago, it sold for $2.9 million. At the moment, it is valued at just a few tens of dollars, according to G4Media.
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“In a highly speculative and volatile market,” nearly 23 million people currently hold worthless NFTs, the study said. Only 1% of the 73,000 NFTs examined “have a value greater than $6,000”, which is about €5,625. “This is a reality that should serve as a brake on NFT euphoria,” says DappGambl.
The only NFTs still worth anything in 2023
Beyond the example above, several other NFTs have sold for millions of dollars over time. The most popular example is the Bored Ape Yacht Club collection featuring monkey portraits. Those became very famous overnight, both because of a very good PR campaign and because they were some special works of art that maintain their relevance among buyers. Nor does it happen with most other NFTs.
“Projects without clear use cases or compelling narratives […] are experiencing increasing difficulties in attracting the attention” of customers, the same study also shows.
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Fascinatingly, everyone at DappGambl is of the opinion that “NFTs still have a place in our future” and could “weather the market slowdown”. The condition is that they meet one of the following three factors defined by cryptocurrency experts: “be historically relevant (like Pokémon cards, which sell like gold), possess genuine art, or provide utility” .