After the hype dies down research shows 95 percent of NFTs are worthless
As a society we love hype, buy into the hype, then forget to ask: What happens when that hype vanishes?
Key takeaways
- The company found that 69,795 of the 73,257 NFT collections analyzed now have a market cap of zero Ether.
- In other words, 95 percent of NFT collectors — purchased by an estimated 23 million people — are holding onto the exclusive rights to JPGs that are effectively worth nothing.
- Even filtering out just the top value NFTs, dappGambl found that 18 percent of these top collections had a market cap of zero Ether, indicating that even hyped-up collections have become effectively worthless.
Cite or link to this article
Griffin, M. (2023) 'After the hype dies down research shows 95 percent of NFTs are worthless', 311 Institute, 24 October. Available at: https://www.311institute.com/after-the-hype-dies-down-research-shows-95-percent-of-nfts-are-worthless/ (Accessed: 1 October 2026).
In a warning about jumping on things at the first sign of hype according to a recent report by crypto platform dappGambl called "Dead NFTs: The Evolving Landscape of the NFT Market," 95 percent of the tokens are practically worthless today. The company found that 69,795 of the 73,257 NFT collections analyzed now have a market cap of zero Ether.
In other words, 95 percent of NFT collectors — purchased by an estimated 23 million people — are holding onto the exclusive rights to JPGs that are effectively worth nothing.
"This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space," dappGambl's analysis reads. "Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses."
The tokens sprang into the limelight two years ago, with some sought-after tokens going for millions of dollars at the time. But interest has waned significantly, and prices have dropped precipitously. In July, the floor price of the Bored Ape Yacht Club collection sank to a historic low of below 30 ETH - roughly $58,700 at the time - which was the lowest it'd been since October 2021.
Since then, the floor price has only continued to sink, reaching depths of just 24 ETH at the time of writing, according to CoinGecko, or around $38,000.
It's a moment of reckoning for the space, and the future of the tokens is uncertain as ever. Even filtering out just the top value NFTs, dappGambl found that 18 percent of these top collections had a market cap of zero Ether, indicating that even hyped-up collections have become effectively worthless.
That doesn't necessarily mean NFTs have gone away completely, with the report suggesting that NFTs "still have a place in our future." But to weather the storm, the tokens will have to prove they have inherent value, whether that's from being culturally relevant or representing actual art, which is far easier said than done.
Meanwhile, crypto communities are seemingly in denial about the devastating downturn, with some Redditors arguing NFTs are still a bull market and that "now is the time to buy."
Whether they'll convince anyone and breathe new life into the space remains to be seen - but for now I’m not holding our breath.
FAQ
Why does this matter?
As a society we love hype, buy into the hype, then forget to ask: What happens when that hype vanishes?
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
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Sources and further reading
- Dead nfts dappgambl.com
- millions of dollars hypebeast.com
- historic low of below 30 ETH coindesk.com
- according to CoinGecko coingecko.com
- K1j26mz reddit.com
- now is the time to buy twitter.com
Source: first published by the 311 Institute on 24 October 2023. Cite as: Griffin, M. (2023). After the hype dies down research shows 95 percent of NFTs are worthless. 311 Institute. https://www.311institute.com/after-the-hype-dies-down-research-shows-95-percent-of-nfts-are-worthless/
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