DappGambl: The NFT Star Losing Its Shine
Analysts from DappGambl, in their report titled "Dead NFTs: The Evolving Landscape of the NFT Market," contend that the once-thriving NFT sector now appears lackluster, with dubious market metrics as the hype fades.
During the hype’s pinnacle in 2021-22, the monthly trading volumes of non-fungible tokens were at $2.8 billion. This period mirrored the mid-19th-century California Gold Rush. Everyone started minting their NFTs: experienced artists, budding musicians, students, and tech-savvy retirees. Many were even fortunate enough to make substantial profits from it.
However, DappGambl's researchers believe that era has ended and is unlikely to come back.
Using data from NFT Scan, they conducted a comprehensive analysis of 73,257 collections to identify the prevailing trends.
What were the key findings from the current market analysis?
- 95% (69,795 out of 73,257) of the collections studied hold no market value.
- Only one-fifth of all the tokens from these collections have been purchased, demonstrating the actual (and not media-inflated) interest in NFTs.
Only 20% of NFTs in 2023 have found new owners. Source: dappgambl
- A mere 1% of the most successful collections, as per CoinMarketCap, are valued at over $6,000. Meanwhile, 18% of previously sought-after tokens were assessed at 0 ETH during the analysis.
- Today, 41% of tokens fall within the price range of $5 to $100.
8% of NFTs hold zero value. Source: dappgambl
Furthermore, DappGambl has uncovered 195,699 NFT collections seemingly lacking clear owners. They assert that the creation of this substantial token volume demanded 27,789,258 kWh, resulting in approximately 16,243 tons of CO2 emissions. The report emphasizes that the pursuit of rapid profits is contributing to environmental harm without any practical reasoning.
It is essential to note that DappGambl is part of the crypto-gambling industry, a sector that generates billions of dollars. Its interest in digital currencies has long gone beyond merely expanding available payment methods. Crypto iGaming is keen on collaborating with the NFT sector, leveraging tokens as bonuses, rewards, and awards.
Additionally, casino operators can employ NFTs for game creation, allowing DappGambl's forecast to be considered unbiased.
On the other hand, judging NFT technology based solely on its art applications is akin to drawing conclusions about cryptocurrencies by only examining meme coins. The utility of non-fungible tokens is not limited to avatars and collectible gaming items. They have a broader socio-artistic impact and have evolved into more than just assets for resale.
