It’s official: The much-hyped NFT bubble has officially burst. Industry experts at CryptoSlate recently released a groundbreaking new report that reveals the true value of the current NFT craze. The report revealed that a whopping 95% of all NFT collections have zero value, with many selling for below their issuing prices on the secondary market. The few select NFTs that are still fetching a premium are belonging to collectibles released before the start of the NFT craze, such as Nyan Cat and CryptoKitties.
These sobering findings mark a stark contrast to the mania of early this year, when digital artists and collectors were scrambling to acquire rare NFTs. The market has now cooled significantly, however, with many of the major players in the NFT space experiencing a pullback of investor interest. The CryptoSlate report also highlighted problems within the secondary NFT markets, such as a lack of liquidity, prohibitive gas fees and a dearth of trust.
These systemic issues, coupled with the market downturn, have led to a significant drop in prices on the secondary market. This is especially true for those with larger collections; projects such as Cryptopunks, SuperRare and Art Blocks are seeing the most severe drops. What started as a new and exciting investment opportunity has quickly turned sour, with many collectors now scrambling to offload their collections in order to recoup their losses.
It’s unclear at this point whether or not the NFT market will recover from this downturn, or if this marks the beginning of a larger correction in the space. Regardless, it’s clear that the NFT bubble has now officially burst.