A whopping 95% of NFT collections, roughly 69,795 out of 73,257 of them, just dropped to a market cap of zero Ether. Virtually worthless!
These once-hyped digital tokens, known as non-fungible tokens or NFTs, had everyone from celebrities to artists jumping on the bandwagon just a couple of years ago. Remember that time when the former Twitter boss Jack Dorsey's first tweet went for $2.9 million as an NFT? Well, it seems the tide has turned. The report also reveals that 79% of all NFT collections haven't even been sold, painting a grim picture of a market that's now looking highly speculative and volatile.
It's not just about the plummeting values of these NFTs; the study also delves into the environmental impact. Minting NFTs, it turns out, consumes a significant amount of energy, equivalent to the yearly emissions of thousands of homes or cars. And here's the kicker – some NFTs have huge listed floor prices, but their actual sales are abysmally low, suggesting inflated valuations and a lack of genuine buyer interest.
While NFTs might have a future, the report suggests they need to be historically relevant, true art, or provide real utility to survive the ups and downs of this rollercoaster market. If you're thinking about diving into the NFT world, it might be wise to do your due diligence and tread carefully.