NFT market in trouble

The NFT market has experienced rapid growth and steep decline over the past few years. Although the initial craze and large amounts of capital investment made people full of expectations for this digital asset, now the NFT market is facing huge instability.

According to the latest report from NFTEvening.com, the average lifespan of NFTs is only 1.14 years, and as many as 96% of NFTs have been considered "dead", which undoubtedly casts a shadow on the future of NFTs.

The research team analyzed more than 5,000 NFT collectibles and 5 million NFT transactions to investigate the current market conditions for NFTs, including holder profitability, the performance of different NFT collectibles, and the overall longevity of NFTs. According to the research results, 43% of NFT holders are currently in the red, with an average loss of 44.5%. This high proportion of losses shows that NFT investments are extremely risky and uncertain.

Image source: Summary of key points in the research report of "NFTEvening.com"

Most NFTs are dead

According to the report, 96% of NFTs have "died", a proportion that has attracted widespread attention in the market. Research believes that the criteria for an NFT to be considered "dead" include the following three points: zero transaction volume, less than 20 sales within 7 days, and no activity on social media.

Source: "NFTEvening.com" Criteria for determining the death of NFT

In 2023, this trend reached its peak, with 30% of NFTs considered dead. This means that the vast majority of NFT projects cannot maintain long-term value and can only rely on speculative demand in the short term.

This short-lived phenomenon reflects the highly speculative nature of the NFT market. The average lifespan of NFTs is 2.5 times shorter than traditional crypto projects. This shows that due to the violent price fluctuations of digital assets and the high novelty of the market, it is difficult for NFTs to sustainably maintain their value. Although the market is still expecting NFTs to resume their upward trend, current data shows that the market downturn may continue for some time.

Source: "NFTEvening.com" The average lifespan of NFT is only 1.14 years

The profit and loss polarization of NFT collectibles

The report also noted that there are huge differences in profitability between different NFT collectibles. For example, the Azuki Collection has become one of the most profitable projects due to its strong community engagement, unique artistic appeal, and effective marketing strategies, with investors receiving over 2.3x profits on average. In contrast, the Pudgy Penguins collectible has become a negative example of the market, with its holders facing losses of up to 97%, making it the least profitable NFT collectible currently.

Image source: "NFTEvening.com" NFT profitability

This phenomenon shows that although some NFT collectibles perform well in the market, the vast majority of NFT projects fail to succeed as expected, which further reinforces the instability of the market. The future direction of the NFT market is full of uncertainty, especially in the bull market of 2024. NFT failed to recover, but continued to show a downward trend. While other cryptocurrencies and blockchain industries have grown in the 2024 bull run, the NFT market has trended in the opposite direction, showing waning interest and confidence in NFTs.

Future Outlook: Where will the NFT market go?

While the future of the NFT market is challenging, the data also offers some valuable insights. Investors should be more cautious and consider more stable and sustainable investment strategies. The rise and fall of NFTs reminds us that in emerging digital markets, investment risks are huge, and investors need to conduct sufficient due diligence and hold realistic expectations.

In the future, whether the NFT market can resume its upward trend will depend on whether the market can adjust and improve to attract more long-term investors and develop projects that can truly create value. As the market continues to change and develop, the NFT market may still have a chance to recover, but this will take time and more innovation.

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.