Rollingstone.com had a major success today with an intriguing article declaring the decline of non-fungible tokens (NFTs). The article, titled “Your NFTs Are Actually – Finally – Totally Worthless,” is based on a study by dappGambl, a community of finance experts, and has generated a lot of buzz. It is currently at the top of the trending charts on both their website and Google. If you search for “NFTs” in your browser, you’ll find it right at the top.
There is definitely substance to this article, and while the headline might not be completely accurate, it captures the attention-grabbing nature of such titles. To some extent, it is true that most NFTs hold no value. According to the study, out of the 73,257 NFT collections analyzed, an astounding 69,795 have a market cap of zero ETH. This represents 95% of the total, which is essentially all of them. This presents a significant challenge for the 23 million people who own NFTs without any value.
Miles Klee, a CoinDesk columnist, points out that only 21% of the collections included in the study can claim full ownership, leaving around four out of every five collections unsold. As buyers become more selective, projects without clear use cases, compelling narratives, or genuine artistic value struggle to attract attention and make sales.
But does this mean NFTs are truly dead, as the article suggests? Not exactly.
Trading volumes have decreased, but they are still significant. According to The Block, trading reached around $63 million last week, a significant drop from the $360 million weekly volume in February.
It is important to note that 5% of collections still hold value. The article explains why “ugly cartoon apes” are not as popular online anymore, but Bored Ape NFTs are still being traded with an average price of about $42,000 for a Bored Ape Yacht Club NFT.
What’s more important than the specific trading dynamics mentioned is the insight this article provides into how mainstream media operates. Publications often look for extremes to create sensational headlines and grab attention. Rolling Stone, for example, previously published an article in November claiming that “The NFT Bubble Has Burst, but the Value For Creators Is Just Heating Up.” They also enthusiastically promoted their partnership with the Bored Ape Yacht Club last summer, calling it a rare opportunity for the public to own Rolling Stone-approved art from BAYC. Now, Rolling Stone has a different perspective and uses similar exaggerated language.
In conclusion, it is important to note that while the initial headline may be eye-catching, NFTs still have trading activity and some collections hold significant value. This article highlights the tendency of mainstream media to sensationalize stories and seek extreme narratives.
If you have been following the crypto world for some time, you have probably seen this familiar scenario happen repeatedly. Despite being dismissed many times, Bitcoin continues to move forward, gaining a large following and reaching a price of over $26,000. This is a remarkable achievement.
Although there have been ups and downs, it is unreasonable to believe that a valuable technology like NFTs will disappear completely. NFTs act as digital packaging for both physical and non-physical items, making tracking and trading easy. This concept has great potential in various industries, whether it is in the art market or elsewhere.