The explosion in NFT related discourse in the latter half of last year left a lot of people excited about the prospects of using such a piece of tech. Artists and investors alike felt like they had a lot to gain by experimenting with NFTs, but with all of that having been said and now out of the way it is important to note that a new report from Nansen indicates that the NFT craze might be dying down.
About a third of all of the NFTs that were created since the start of 2021 are now more or less worthless. There is barely any trading activity occurring for these NFTs, and when there is no trading going on the value of the asset will start to plummet. Some might believe that two thirds of NFTs would still be profitable, but in spite of the fact that this is the case a further third of them are still operating at a loss.
While this third of all NFTs are being traded, the value that they are being traded at isn’t even high enough to cover the cost of minting them with all things having been considered and taken into account. That makes them a less than ideal asset for traders because of the fact that this is the sort of thing that could potentially end up making them lose money with each trading action. Only about a third of the 19 million NFTs that were analyzed as part of this survey were being traded at a floor price that was higher than their minting costs.
That might be because the vast majority of NFT minters don’t invest a lot into their asset. They are also not active traders, and many of them were just taking part in a fad without fully understanding its implications. While the NFTs that have managed to turn a profit are profitable to an almost unbelievable extent, they are few and far between. NFTs that are losing their value continue to do so, and they might soon be worth next to nothing.
Read next: New Survey Reveals Awareness of Virtual Reality and its Adoption Among Consumers
About a third of all of the NFTs that were created since the start of 2021 are now more or less worthless. There is barely any trading activity occurring for these NFTs, and when there is no trading going on the value of the asset will start to plummet. Some might believe that two thirds of NFTs would still be profitable, but in spite of the fact that this is the case a further third of them are still operating at a loss.
While this third of all NFTs are being traded, the value that they are being traded at isn’t even high enough to cover the cost of minting them with all things having been considered and taken into account. That makes them a less than ideal asset for traders because of the fact that this is the sort of thing that could potentially end up making them lose money with each trading action. Only about a third of the 19 million NFTs that were analyzed as part of this survey were being traded at a floor price that was higher than their minting costs.
That might be because the vast majority of NFT minters don’t invest a lot into their asset. They are also not active traders, and many of them were just taking part in a fad without fully understanding its implications. While the NFTs that have managed to turn a profit are profitable to an almost unbelievable extent, they are few and far between. NFTs that are losing their value continue to do so, and they might soon be worth next to nothing.
Read next: New Survey Reveals Awareness of Virtual Reality and its Adoption Among Consumers
