Majority of NFTs Now Worthless
New Study From Crypto Site Dappgambl Shows 95% of NFTs Have Lost All Value
By Connor Markey, Co-Editor-In-Chief
One of the strangest fads to arise recently was the non-fungible token (NFT) frenzy. Soon, they might be a thing of the past.
After three years of circulation, demand for the “digital commodity” that once boasted a market cap of $2.8 billion in monthly trading volume has now all but vanished, according to a new study by cryptocurrency trading website, Dappgambl.
The study shows that while worth several billion at its peak, the NFT market, as a whole, was worth only $80 million as of July 2023, accounting for only 3% of its former value.
“I think that was going to happen no matter what,” said Jeremy Korin, a Lynn student.
Another Lynn student, Kyle Verb, shared a similar sentiment.
“That makes total sense. To begin with, it’s just digital art that you can buy, and it seems like it would just become pointless to the point where it has no use, which it has now reached.”
For context, in January 2022, pop artist Justin Bieber purchased a Bored Ape NFT for $1.31 million. According to CoinDesk, that NFT is now worth about $59,000.
The drop in value for NFTs can be attributed to several factors, the main one being a massive oversupply problem. While a few NFT collections have gained popularity, the majority of them remain unsold: approximately 79% according to Dappgambl’s study.
While this may not sound like a concern at first, NFTs are not free to produce.
In their study, Dappgambl also identified 195,699 NFT collections that have not found a buyer, which was estimated to have cost around 27,789,258 kWh of electricity. This is equal to around 16,243 metric tons of CO2. In other words, the equivalent to the yearly emissions from 2,048 homes, or 3,531 vehicles, according to figures provided by the United States Environmental Protection Agency.
