Remember back in March 2021, when the work by digital artist Beeple, entitled “Everydays: the first 5000 days”, was sold for a staggering $69.3 million at Christie’s.
That was the moment when the whole world – or so it seemed – fell in love with these digital objects, whose value lies in just a few lines of code.
With the hype reaching its peak during the 2021 bull run, the NFT market saw nearly $2.8 billion monthly trading volume in August 2021. But by July 2023, the tune has changed drastically.
Indeed, weekly traded values plummeted to around $80 million, marking a significant contraction.
Amid this backdrop, a startling reality came to light: Most NFTs are trading at a market cap of zero Ethereum (ETH), rendering them “worthless”.
The data from crypto and Web 3.0 review platform DappGambl, which was derived from an extensive analysis of 73,257 NFT collections, unveils a sobering narrative contrasting sharply with the stories of million-dollar deals and overnight success. Indeed, of the analyzed NFT collections, a meager 21% were fully claimed or had over 100% ownership, leaving 79% unsold.
This imbalance between the flurry of new NFTs and the actual demand represents a pivotal issue of oversupply, creating a buyer’s market. In such an environment, discerning investors are increasingly scrutinizing the uniqueness, potential value, and narrative behind NFT projects before taking the plunge.
Drilling down into the cream of the NFT crop, a closer examination of the top 8,850 NFT collections, as listed on CoinMarketCap, unearthed a continuation of this disquieting trend.
Even among these successful projects, 18% have a floor price of zero, while only 1% command a price above $6,000. This reality is far from the ballyhooed million-dollar deals that once dominated headlines and consequently spotlighting the nature of value in a market driven by speculation and fleeting trends.
Liverpool trailed to Leicester City in just under three minutes – a rapid counter-attack gave the Foxes a flying start – before fighting back to win 3-1 in the EFL Cup third round on Wednesday.
The Reds’ equaliser came when Ryan Gravenberch set up Cody Gakpo to find the far corner in the forty-eighth minute.
Then, a winner through a stunning strike from second-half substitute Dominik Szoboszlai as he took aim from outside the box and smashed the ball into the top corner twenty-two minutes later.
And Diogo Jota's flicked Jarell Quansah’s low cross in off the inside of the post in the eighty-ninth minute to put the result beyond doubt as the 2022 winners reached the fourth round, where they will meet AFC Bournemouth in the week commencing October 30.
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