The NFT Bubble Has Officially Burst: Over 95% of NFT Collections Have Zero Value
The NFT bubble has officially burst. After hitting an all-time low in April 2021, nearly 95% of all NFTs issued since 2017 are now worth nothing, according to a report from NonFungible.com.
The report states that of the more than 220,000 NFT collections issued since 2017, just 7% (16,500) have a current market value of greater than $1. The report also states that these collections represent less than 0.5% of all NFTs ever issued. The remaining 94.5% have a current market value of zero.
This indicates a significant shift from when the NFT craze first began in 2017. Back then, more than 20% of all NFTs issued had a current market value of greater than $1.
The report attributes the burst in the NFT market to over-speculation, a lack of liquidity, and a rapid influx of new, inexperienced investors, which has flooded the market with a large number of illiquid and low-value NFTs.
The future of the NFT space remains uncertain, but it is likely that only the most successful and well-established NFT collections will continue to have any substantial value in the long-term.