The crypto world finds itself in the midst of a prolonged and harsh nuclear crypto winter, with recent developments shedding light on the stark reality.
This week, it has been revealed that a staggering 95% of NFT collections have seen their value plummet to zero in terms of Ethereum. In concrete terms, out of the 73,257 NFT collections in existence, a jaw-dropping 69,795 have been reduced to a market cap of zilch. This translates to roughly 23 million individuals who have invested in these NFTs now grappling with investments rendered completely worthless.
Further scrutiny reveals that the NFT market is struggling on multiple fronts. Astonishingly, a staggering 79% of all NFT collections have remained unsold, primarily due to a lack of demand or interest.
Many perceive these collections as nothing more than digital JPEGs (or my personal favourite premium Giphy’s), further adding to their skepticism in what is already a highly speculative and volatile market.
Delving deeper into the statistics, a concerning 18% of top NFT collections are currently valued at zero, indicating a complete loss of value for those who held them.
Additionally, 41% of the top collections are priced between $5 and $100, while less than 1% of the collections boast values exceeding $6,000.
This downturn in the NFT market can be traced back to the monumental purchase of an NFT in March 2021 when Sina Estavi, often represented by the clown emoji ?, shelled out $2.9 million for the NFT of the first-ever tweet by Twitter founder Jack Dorsey, my god, what a time to be alive.
The decline in NFT market activity is palpable when comparing it to historical data. NFT volumes have dwindled to their lowest levels in years, with weekly trading volume plummeting from a robust $1.4 billion in April 2022 to a mere $60 million this week. To put this into perspective, the leading NFT marketplace, OpenSea, recently recorded a meager volume of just 1000 ETH, an amount lower than the daily fees they were generating in January 2022.
In conclusion, the crypto community remains ensnared in a nuclear ☢️ crypto winter that shows no signs of abating.
The future of the NFT market and the broader crypto landscape hinges on the emergence of new liquidity or compelling narratives that can ignite a revival and usher in a new bull market, being the devils advocate, Satoshie uses NFTs to create unique raffle tickets when you purchase your spot, is there any way we can kick start the NFT movement ? comments below
