NFT Market Faces Unprecedented Crisis, with a Shocking 96% of NFTs Now Considered 'Dead'

This digital extinction event comes as nearly half of NFT holders grapple with significant financial losses, casting a long shadow over the future of digital ownership and blockchain-based assets, according to a report by NFT Evening.

The once-booming non-fungible token (NFT) market appears to be facing an unprecedented crisis, with a shocking 96% of NFTs now being considered “dead,” according to a recent study.

This digital extinction event comes as nearly half of NFT holders are grappling with significant financial losses, casting a long shadow over the future of digital ownership and blockchain-based assets, a report by NFT Evening reveals.

The study, which examined over 5,000 NFT collections and 5 million transactions, aimed to assess the health and market viability of NFT projects.

The findings suggest that the vast majority of NFTs have now become essentially worthless.

96% Of NFTs Are Now 'Dead'

The NFT market exploded in popularity during 2021, with billions of dollars being poured into digital collectibles and unique blockchain-based tokens.

However, the market cooled significantly throughout 2022 and has continued to struggle in 2023.

Now, a recent study has revealed the extent of the NFT market crash, with 96% of all NFTs being classified as “dead.”

This means that these NFTs have no recent trades or activity and are unlikely to ever be sold again.

The study also found that the average lifespan of an NFT is just 1.14 years, which is 2.5 times shorter than traditional cryptocurrency projects.

This brief existence speaks to the rapid turnover and potential lack of long-term value in many NFT projects.

NFT investors might be surprised to learn that they are actually more likely to lose money on NFTs than to make a profit.

According to the report, over 43% of NFT holders are currently unprofitable, with the average holder experiencing a 44.5% loss on their NFT investments.

The financial data from the report paints a grim picture for NFT investors.

However, there is a wide range of disparities between successful and failing NFT collections.

The Azuki collection stands out as the most profitable, with holders seeing an average of over 2.3 times the profit on their investments.

On the other hand, holders of Pudgy Penguins NFTs are facing a 97% loss, making it the most虧損unprofitable collection analyzed in the study.

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