The NFT market has experienced a decline in recent times due to the bear market. Numerous NFT collections have failed to attract any buyers, and more than 40% of the collections on the market are selling for a low price range of $5 to $100. The charm of the NFT market has faded, with many collections struggling to find takers. This decline is evident in the Bored Ape Yacht Club (BAYC), CryptoPunks, and Moonbirds collections, which were once popular but have now lost their appeal. Celebrities who previously flaunted their million-dollar NFT purchases have moved on, leaving the relatively new industry in the shadows. A report by dappGambl reveals that the NFT industry is currently facing challenges. Data from NFT Scan and CoinMarketCap indicates that 95% of the market, or 69,795 out of 73,257 NFT collections, have a market cap of 0 ETH, rendering them worthless assets for the 23 million people who hold them. Additionally, the report shows that only 21% of these collections are owned, leaving 79% unsold. This indicates that a staggering 80% of all NFT collections have failed to find full ownership. The report also highlights that 18% of the top collections struggle to find demand, and 41% of them are priced between $5 and $100. Surprisingly, less than 1% of popular NFTs are priced at $6,000 or higher, revealing a less glamorous reality for the market. Furthermore, there is a significant disconnect between the floor price of some collections and their actual demand, with inflated valuations that do not align with real buyer interest or transactions. However, the report does not view this downturn as the end of NFTs. It argues that NFTs still hold potential for the future. The current state of the NFT market can be seen as the hype subsiding, and once the excitement fades, the industry may regain its former glory. However, only time will tell if this will indeed be the case.
