NFT Report (Patreon)

96% of NFTs Now Considered “Dead,” 43% of Holders in Loss:

According to the latest report from NFT Evening, the NFT market is facing a significant downturn. Data reveals that 96% of NFTs are considered “dead,” meaning they have no trading volume, low 7-day sales, or lack activity on Twitter. Additionally, around 43% of NFT holders are currently at a loss, with an average loss of 44.5%. The report also highlights that the average lifespan of an NFT is only 1.14 years, 2.5 times shorter than traditional crypto projects. Notably, 2023 saw the highest number of NFT “deaths,” with nearly one-third of all NFTs becoming inactive.

Reasons for Decline:

• Over-saturation: The market became flooded with projects, nearly all lacked genuine utility or artistic value beyond speculative investment.

• Lack of Real Utility: Many NFTs promised utility (like access to events, games, or communities) which either never materialized or wasn't as valuable as anticipated.

• Market Speculation: The market was driven heavily by speculation rather than intrinsic value, leading to a bubble that eventually burst.

I still never understood Raoul Pal, has expressed his strategy of using NFTs as a way to store gains from bull markets! Sounds like madness to me.