2021 to 2022 was a time when the trend of non-fungible tokens (NFTs) was booming.
Celebrities such as Stephen Curry were purchasing NFTs for hundreds of thousands of dollars.
In addition, a whopping number of people were launching their own exclusive collections and even creating their own cryptocurrency.
Among the celebrities with valuable NFT portfolios was Snoop Dogg, whose portfolio was reportedly worth over $20 million. What’s more, the Hip-Hop legend ventured into projects such as collaborating with his son, Cordell Broadus, and MOBLAND to drop the first-ever digital weed farms as NFTs.
However, once the hype died down, so did the valuation.
An example, as previously shared by AFROTECH, is when Justin Bieber reportedly bought a Bored Ape Yacht Club NFT for $1.29 million and then another one shortly after for $444,000.
Justin Bieber bought this NFT for $444k. We posted this picture of the same NFT for free. pic.twitter.com/wXM8VIdiNE
— Market Rebellion (@MarketRebels) February 4, 2022
Following the crash of the cryptocurrency market due to TerraUSD and Luna, Bored Ape NFT collection NFTs were said to have depreciated to around $60,000.
Now, a new report has shown that the status of NFTs hasn’t improved. After compiling a comprehensive analysis of more than 73,000 NFT collections, dappGambl found that “the vast majority of NFTs are worthless.”
“Of the 73,257 NFT collections we identified, an eye-watering 69,795 of them have a market cap of 0 Ether (ETH),” the report detailed. “This statistic effectively means that 95% of people holding NFT collections are currently holding onto worthless investments. Having looked into those figures, we would estimate that 95% to include over 23 million people who’s investments are now worthless.”
The report also emphasized that lack of due diligence and demand for NFTs are significant factors in why they aren’t valuable.
While the NFT market has fallen, dappGambl shared it believes that “NFTs still have a place in our future” and “we still maintain that once the dust has settled, we will start to see an evolution within NFTs.”