NFTs (non-fungible tokens), which were once the darlings of the blockchain world, are now almost worthless, according to analysis by crypto gambling website, DappGambl.
Per the report, 95% of NFT collections are now almost worthless. The gambling platform reviewed about 69,795 NFT collections and found that they had a market capitalisation of zero Ethereum.
While some NFTs still hold their value, only 21% of the collections studied by DappGambl had 100% ownership. Findings from the analysis also estimate that less than 1% of NFTs are worth $6,000 or more.
Indeed, shortly after one year that YouTuber, Logan Paul purchased the Bumblebee NFT for $623,000, the NFTs are now worth a meagre $10.
Why the drop in value?
Due to the crypto downturn in 2022, values of most NFTs nosedived leaving most investors in red. Investors who had previously bought digital collectables at high values couldn’t sell at a loss. However, DappGambl said that NFT projects that lacked clear use cases, compelling narratives, or genuine artistic value didn’t attract attention and sales.
NFTs introduced the world to a new world of owning and monetising digital assets, however, the latest findings by DappGambl remind the world of the volatility of the NFT market.
An NFT is a unique digital identifier that is recorded on a blockchain, and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded.
Being created on blockchain technology, NFTs allow the transfer of ownership and transparent ownership. They allow artists to monetize their creations made digitally and thus have gained huge popularity.
