- The NFT market has cooled down in the recent bear market
- Several NFT collections have failed to find any takers
- Over 40% of the NFT collections in the market fetch a low price between $5-$100
YEREVAN (CoinChapter.com) — A couple of years ago, nonfungible tokens (NFTs) dominated the scene. Collections like the Bored Ape Yacht Club (BAYC), CryptoPunks, and Moonbirds made waves. Celebrities rushed to flaunt their million-dollar purchases, making the relatively new industry the talk of the town. However, much has changed since then. One could argue, that NFTs are now dead!
According to a recent dappGambl report, the NFT industry is facing a challenging time. Citing data from NFT Scan and CoinMarketCap, the website revealed that 69,795 out of 73,257 NFT collections currently have a market cap of 0 ETH. This figure is 95% of the market, leaving 23 million people holding worthless assets.
Furthermore, the research highlights that people only own 21% of these collections. This leaves 79% or 4 out of 5 unsold with the creators.
“This situation is telling of a significant imbalance between the creation of new Non Fungible Tokens (NFTs) and the actual demand for these digital assets in the current market landscape. This surplus of supply over demand is creating a buyer’s market where potential investors are becoming more discerning, carefully evaluating the style, uniqueness, and potential value of NFTs before making a purchase,”the report suggests.
Even popular NFTs take a hit
The findings of dappGambl, which provides analysis of cryptocurrency gambling platforms and Web 3.0 projects, indicate that 18% of top collections struggle to find demand. Meanwhile, a whopping 41% of these are priced between $5 and $100. Shockingly, less than 1% of popular NFTs command a price tag of $6,000, revealing a less glamorous reality.
To make matters worse, there is a clear disconnect between the floor price of some of these collections and their actual demand. There are cases of inflated valuations that don’t align with real buyer interest or transactions.
“For example, MacContract on Ethereum has a floor price of $13,234,204.2, but its all-time sales is only $18… Such disparities reveal a speculative nature in parts of the NFT market, where exorbitant prices can be set by sellers without any bearing on tangible, real demand,”says the report.
The report, meanwhile, does not see this downturn as the demise of NFTs. The analytical firm argues, that NFTs continue to hold potential for the future.
The current state of the NFT market is nothing but the hype subsiding. Once the razzmatazz goes away, the industry will regain its lost grammar. But will it? Time will show.