New study finds that 95% of NFTs have lost all value
Things are not looking good for the NFT market. 95% of assets are worthless and the purchase and sale of assets has fallen by 97% in two years. With these figures, the future is nothing to write home about. But there is still more…
The NFT market exploded during the pandemic, under the cover of the cryptocurrency “boom.” These digital goods, which become unique by being “chained” to a blockchain, reached their peak in August 2021, when They moved 2.8 billion dollars a monthin the sale and purchase of NFTs. Today they only move 80 million dollars, 3%.
The NFT craze led many people to pay thousands, millions of dollars, for absurd computer-generated drawings, without any interest. Today they are worthless.
The decline of NFTs
An image market maintained without any reference (artistic, social, or cultural) is a time bomb waiting to explode. And in the end, it exploded.
The invasion of Ukraine, the fall of Bitcoin and other cryptocurrencies, and inflation have wiped out money for speculation, and investors have turned their eyes elsewhere.
The cryptocurrency website dappGambl has carried out a study of the current NFT marketand they themselves have become depressed.
DappGambl has tracked 73,257 NFT collections, and found that 95% have zero value. They are worthless. They estimate that 23 million people who have bought NFTs have lost all their money.
Besides, 79% of the collections that can currently be purchased have never been sold.
NFTs are a game of gambling and speculation, and whoever plays risks losing. We don’t feel sorry for anyone here. But a very different topic is the impact that these inactive and unsold NFTs have on the environment.
The process of creating an NFT consists of certifying a digital asset as unique through a transaction on the blockchain of a cryptocurrency. Each certification consumes energy.
The study has located 195,699 NFT collections NFTs that have no owner, or have never been sold. These collections have consumed 27,789,258 kWh of electricity to create themwhich is equivalent to a carbon footprint of 16,243 metric tons of CO2. That is what 3,531 or 2,048 houses pollute per year…
95% of current NFTs have zero value. Candidly, the study advises that only NFTs be created that are historically relevant (like the first tweet in history), authentic works of art, or that provide genuine utility. Which is precisely what common sense requested from day 1 of the birth of NFTs…