NFT Evening experts, based on the analysis of 5,000 collections and 5 mln transactions of non-fungible tokens, reached the conclusion that 96% of them are dead. In this category, experts included NFTs with zero trading volume, low 7-day sales, and no activity on Twitter.
Is the death of collectible assets already a confirmed event or can this area be somehow revived?
NFT Evening data shows that the vast majority of projects (96%) are indeed inactive. This points to strong headwinds facing the industry.
Reasons for the decline:
- Speculative nature of many NFT projects
- Lack of long-term value for most tokens
- Market overhang with low-quality projects
Despite the gloomy stats, there are several ways for the sector to be revived:
a) The success of projects like Azuki shows that high-quality collections with a strong community can still be successful.
b) NFTs can find application in digital identification, property rights to real assets, etc.
c) Tokens that provide real utility (access to content, services, events) have a better chance of long-term success.
d) Clear rules of the game can draw in more serious investors and projects.
The NFT market will continue to be "cleansed" of ineffective projects. Only those that offer real value will survive and thrive. Perhaps we will see fewer speculative "works of art" and more practical applications of NFT technology.