More than 95 percent of NFTs created are now worthless, and the value of many of the most hyped NFTs has dropped by more than 95 percent since last year, according to a new study.
Of the 73,257 NFT collections identified by crypto site dappGambl’s research, 69,795 of them have a market capitalization of zero.
According to the study, about 23 million people hold worthless assets in these collections.
And even among the 8,850 most valuable NFT collections by market cap, 18 percent of NFTs were worthless, and 41 percent were priced between $5 and $100.
In January 2022, Justin Bieber bought the “Bored Ape” NFT for about $1.3 million, but it is now worth about $37,000—a 97 percent decrease. Others have dropped from tens of thousands of dollars to less than ten.
The monkey NFT bought by Justin Bieber (pictured) is down about 97 percent. He and other celebrities are being sued by investors who say they were duped into buying by celebrities who failed to disclose that they were paid to boost sales.
In January 2022, Justin Bieber (pictured in June) bought the “Bored Ape” NFT for around $1.3 million, but it is now worth around $37,000.
For example, the artwork “Winter Bear #1178” sold for more than $35,000 sometime in 2021. It currently costs about $6.50.
Another NFT called “GOOP 7803” is currently worth around $0.50.
NFTs are digital collectibles that are often associated with works of online art. Between 2021 and 2022 there was an NFT gold rush.but this hobby seems to be over.
At its peak in January 2022, the NFT market had monthly trading volume of about $5.36 billion, according to The Block. In August, total volume was just $410 million, less than 8 percent of the high.
“This chilling reality should serve as a sobering test of the euphoria that has often surrounded the NFT space,” the study authors wrote.
“With stories of digital artworks selling for millions and stories of overnight success, it is easy to lose sight of the fact that the market is full of pitfalls and potential losses.”
Musician Madonna was another celebrity to take part in the action. In March 2022, she bought another Bored Ape NFT for approximately $470,000. The highest offer made for it in recent months is about $50,000, a drop of 89 percent.
However, it is part of one of the most sought-after NFT collections ever created, consisting of 10,000 cartoon images of monkeys.
Winter Bear #1178 from the Winter Bears collection once sold in 2021 for over $35,000. It currently costs about $6.50.
This GOOP 7803 from the GOOP TROOP NFT collection is currently worth around $0.50.
Jay-Z bought the CryptoPunks NFT in April 2021 for approximately $130,000.
In August, Bored Ape NFT investors, including Paris Hilton, Justin Bieber and Madonna, sued auction house Sotheby’s, alleging they “misleadingly marketed” NFTs to “manipulate the price” of the assets, the suit said.
Another very popular NFT collection was CryptoPunks. While they still list for around $70,000, they once sold for at least $300,000. Jay-Z bought one in April 2021 for about $130,000.
While the study suggests NFTs may be experiencing something of a renaissance, it found that 79 percent of all NFT collections are currently unsold, and oversupply has created a buyer’s market.
However, the study found that NFTs will have real-world applications in the future, including for gaming, real estate and digital identity.