96% of NFT Collections Now Considered Dead

Recent research has shed light on the current state of the NFT market, revealing some startling statistics about the viability and profitability of these digital assets. According to the report, a staggering 96% of NFT collections are now considered dead, with a significant portion of holders facing financial losses.

Understanding the Data

The study analyzed a comprehensive dataset of 5,000 NFT collections and 5 million transactions. The findings indicate that, on average, NFT holders are experiencing a 44.5% loss on their investments. This suggests that the majority of NFT projects are not providing the returns that many investors had hoped for.

Short Lifespan of NFTs

One of the key insights from the report is the relatively short lifespan of NFTs. The typical lifespan of an NFT is just 1.14 years, which is significantly shorter than that of other crypto projects. This short duration underscores the volatile and speculative nature of the NFT market.

2023: A Tough Year for NFTs

The year 2023 has been particularly challenging for NFT projects, with nearly one-third of them becoming defunct. This trend highlights the difficulties faced by many NFT creators and investors in sustaining their projects over time.

Exceptions to the Rule

Despite the overall grim outlook, there are some exceptions. Certain NFT collections, such as Azuki, have managed to remain highly profitable. On the other hand, collections like Pudgy Penguins have experienced a dramatic decline in value. These examples illustrate that while the majority of NFTs may struggle, there are still opportunities for success in the market.