The Non-Fungible Token (NFT) market has garnered significant attention in recent years, with promises of unique digital assets and investment opportunities. These digital tokens, representing ownership or proof of authenticity of digital or physical items, have witnessed precedented highs followed by a sudden and dramatic fall.
A recent study by crypto analyst portal dappGambl, which surveyed over 73,000 NFT collections, has raised concerns about the current state of the NFT market. It revealed that 95% of these NFTs have a market cap of 0 ETH, essentially rendering them worthless in the current market.
As a result of this shocking turn of events, many have asked: What went wrong? This led Real Research, an online survey app, to gather opinions through its survey on the crashing NFT market.
Here are the key findings of the survey report:
- 85.7% of respondents are aware of the NFT market crash.
- 42.84% of participants have experienced a loss in the value of NFTs they own or had owned
- 55.95% believed the crashing NFT market to be a long-term trend.
Is NFT a Bubble?
Just like traditional investments such as stocks or real estate, some individuals purchase NFTs with the expectation that their value will increase over time. They hope to sell the NFTs later at a profit, driven by rising demand or the perception of scarcity. For starters, 59.35% of respondents to the survey about the crashing NFT market currently own NFTs, whereas the rest (40.65%) do not.
In light of the revelation that over 79% of NFT collections remain unsold, it becomes evident that the supply clearly surpasses demand.
The survey then sought to understand how this information impacted the participants’ investment stance. Results were mixed, with 29.79% indicating that they are now less inclined to invest in NFTs, 26.56% still considering NFTs a viable investment, and 43.65% remaining uninterested in NFT investments.
The Crashing NFT Market
The NFT market experienced a spectacular bull run in 2021 and 2022, reaching a monthly trading volume of $2.8 billion. Fast forward to the present, and a study conducted by dappGambl has revealed that more than 95% of NFT collections are now considered worthless.
The survey sought participants’ awareness of the current NFT market’s value. It revealed that 85.7% of respondents were indeed aware of the crashing NFT market. In detail, 46.86% were well aware and 38.84% were vaguely aware. On the other hand, 14.3% were completely unaware of the crashing NFT market.
Are NFTs Dead?
To put it into perspective, nearly 23 million people now hold NFTs that might not hold any significant value, including Justin Bieber, whose Bored Ape NFT plummeted by 97% in value. This revelation raises the question: Are NFTs dead?
The survey then inquired about participants’ agreement with the assertion that the NFT market is experiencing a significant devaluation. 38.84% strongly agreed, 46.95% somewhat agreed, 10.25% somewhat disagreed, and 3.96% strongly disagreed.
Participants were also asked whether they had personally experienced a loss in the value of NFTs they owned or had owned. Results showed that 42.84% had experienced a loss, 21.95% had not, and 35.21% did not own any NFTs.
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What Lies Ahead for NFTs?
Considering the significant decline in the NFT market, participants were questioned about their opinions on the likelihood of a resurgence in the future. The responses varied, with 33.11% stating it was “Highly likely,” 42.46% considering it “Somewhat likely,” 17.8% finding it “Somewhat unlikely,” and 6.63% deeming it “Highly unlikely.
The final question focused on the participants’ view of the crashing NFT market, asking whether it was a temporary dip or indicative of a larger, long-term trend. A slim majority, 55.95%, believed this to be a long-term trend, while 44.05% considered it a temporary dip.
|Survey Title||Survey on the Crashing NFT Market|
|Duration||September 30 – October 7, 2023|
|Number of Participants||10,000|
|Demographics||Males and females, aged 21 to 99|
|Participating Countries||Afghanistan, Algeria, Angola, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Benin, Bolivia,… Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Chile, China, China (Hong Kong) China (Macao), China (Taiwan), Colombia, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, El Salvador, Ethiopia, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Greanada, Guatemala, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Malaysia, Maldives, Maluritania, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar [Burma], Namibia, Nepal, Nicaragua, Nigeria, Oman, Pakistan, Palestine, Panama, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Sierra Leone, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.|
Real Research News is the media platform that presents insights and studies of wide-range of topics. It focuses on insights gathered from its survey app.