• Analysis of 73 257 NFT collections reveals that 95 percent have a market cap of 0 Ethereum.
• Only 21 percent of those collections are fully owned.
• Fewer than one percent of NFT collections are worth $6 000 or more.

At one point everybody and their dog was selling or buying NFTs, trying to convince others that an image of an ape or pixel art was a sound investment. While the digital commodity (and we’re being very gracious with that descriptor) enjoyed massive gains in 2022, NFT trades and purchases have been on a downward trajectory since March.

So how does the market fare today? According to analysis conducted by crypto gambling website DappGambl, not very well.

The platform analysed 73 257 NFT collections using data provided by NFT scan. Using this data DappGambl was able to assess the health of the NFT market using a variety of data points. The short story is – NFTs are terminal if not already dead.

Of the NFTs analysed, 69 795 or 95 percent of the collections have a market cap of 0 Ethereum. This translates into 23 million people being in the same position as those who right-clicked on and saved an NFT.

There are still some NFTs that hold their value (more on that later) of course, but the overwhelming majority of tokens remain unsold. Only 21 percent of the collections studied by DappGambl had 100 percent ownership.

“This surplus of supply over demand is creating a buyer’s market where potential investors are becoming more discerning, carefully evaluating the style, uniqueness, and potential value of NFTs before making a purchase. As a result, projects that lack clear use cases, compelling narratives, or genuine artistic value are finding it increasingly difficult to attract attention and sales,” writes the gambling platform.

“It is a stark reminder that, while the NFT space has introduced a revolutionary new model for ownership and the monetization of digital assets, it remains a highly speculative and volatile market. As such, both creators and investors should approach with caution, a clear strategy, and a thorough understanding of the risks involved,” it adds.

As for NFTs that do hold their value, well that depends on how one defines value. Less than one percent of the top NFTs have a price tag of $6 000 or more while the majority of the top collections are priced between $5 and $100. This is a startling departure from the multi-million dollar sums NFTs were fetching a year ago.

While DappGambl does outline ways in which NFTs could be useful, these use cases are similar to the use cases that folks cite when talking up the benefits of blockchain technology. These include real estate sales, digital identity and other use cases but until we see an NFT house sale take place, this is all theoretical.

What isn’t theoretical, however, is the downward trend of the NFT market and that doesn’t seem to be changing.