In 2021, the hype was incredible. Everyone wanted to create or buy a NFT and get rich, as the Spanish say.
Two years later, and based on data from the DappGambl website, I can tell you without fear that this industry is almost lifeless.
Let's take a look at what the finding is all about:
- In the midst of its peak during the 2021 bull run, the non fungible token (NFT) market recorded a monthly trading volume of almost USD $2.8 billion in August of the same year. As I told you, the frenzy had us all talking about NFTs.
Now, in July 2023, trading volume, not monthly, but weekly, plummeted to a mere USD $80 million. How is this possible, this event? - the younger ones will say.
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An extensive analysis of more than 73,000 NFT collections revealed that a meager 21% were fully claimed or had more than 100% ownership, leaving 79% unsold! This data is lapidary, really.
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95% of NFT portfolio holders (over 23 million people) are currently holding on to investments that are worthless. This hurts, especially thinking about the most neophytes, people who invest without studying the cycles of a market they do not know, nor its risks.
In fact, according to BeInCrypto, a more extensive examination of the 8,850 best NFT collections, published in CoinMarketCap, revealed that the chilling trend is only getting worse:
- 18% of the collections have a minimum price of zero, while only 1% have a minimum price above $6,000.
Now, with the data in hand, I want to read to you:
Is the NFT industry really dead?
And more importantly, do you understand the value of being critical, questioning and not being swayed by the crowds when it comes to investing?
Remember that your brother-in-law is not the best investment advisor available to you. At the end of the day, he will most likely turn a blind eye if you bring up the subject with him.
Sources:
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