NFT Evening experts, based on the analysis of 5,000 collections and 5 million transactions of non-fungible tokens, came to the conclusion that 96% of them are dead.
Experts included NFTs with zero sales volumes, low sales during the week, and no project activity in X in this category. According to these criteria, the trend of collectible asset death peaked in 2023 - more than 30%.
The average lifespan of an NFT is 1.14 years, which is 2.5 times shorter than that of traditional crypto projects.
“This reflects the highly speculative nature of non-fungible tokens, where rapid price fluctuations and the novelty of digital assets fail to support long-term value,” the analysts noted.
They estimate that over 43% of NFT holders are at a loss. On average, investments in assets have lost 44.5% of their value.
In this context, NFT Evening noted that the most profitable collection on the market is Azuki. Investments in it increased by 2.5 times.
“This success can be attributed to strong community engagement, unique artistic appeal and effective marketing strategies,” experts say.
In contrast, NFT owners of the most unprofitable collection, Pudgy Penguins, faced a loss of 97% of their investments.
Recall that in August, the owner of the most expensive CryptoPunk #5822, Deepak Thapliyal, sold the token that he acquired in 2022 for $23.7 million. The alleged buyer said that the asset cost him ~$3.9 million.
