Over 96% of NFTs are either dead or dying, with nearly half being unprofitable. It feels like just yesterday everyone was buzzing about NFTs, but now, they’ve become one of the biggest flops in the crypto world. So, what exactly happened, and is there any hope left for these digital assets?

Key Takeaways

1. 96% of NFTs Are Dead or Dying: The NFT market has taken a massive hit, with most projects either failing or becoming unprofitable. The hype has clearly faded.
2. Some NFTs Still Thrive: While most projects are struggling, some like Azuki have managed to survive and even turn a profit, thanks to community-driven approaches.
3. Big Losses for Investors: High-profile investors like Justin Bieber have faced huge losses, with some NFTs dropping over 90% in value, showing how risky the market has become.

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Why Are NFTs Crashing?

Researchers at NFT Evening recently analyzed 5,000 NFT projects to figure out why the market has gone so cold. Their findings? A whopping 96% of NFTs are essentially dead, and 43% of them are completely unprofitable.

Things took a particularly bad turn in 2023, with one-third of NFTs struggling to stay afloat. The average lifespan of an NFT project is now only 1.14 years—about 2.5 times shorter than other types of crypto investments. Investors are losing big time, with average losses hitting around 44.5%.

Azuki's Success Amid the Downfall

Despite the grim outlook, a few NFT projects have managed to thrive. One standout is Azuki, which has tripled its return on investment (ROI). Azuki’s success comes from its community-driven approach, which has made it one of the most profitable NFTs. According to CoinMarketCap, the total supply of Azuki has surpassed $11 million, and it’s trading at around $0.0020.

Pudgy Penguin's Massive Fall

Not all big-name NFTs have been so lucky. Pudgy Penguins, once a rising star, saw its value plummet by 97% in May, making it another casualty of the NFT crash. This steep drop has led experts to call it a ‘dead project.’ Many Profile Picture (PFP) NFTs, like Pudgy Penguins, have seen sharp declines, losing their popularity and value.

Big Names, Big Losses: Justin Bieber’s NFT Disaster

Celebrities aren’t immune to the crash, either. Justin Bieber’s $2 million investment in a Bored Ape Yacht Club (BAYC) NFT has dropped to just $100,000—a 94.7% loss. He’s not the only one feeling the pain; his Mutant Ape Yacht Club (MAYC) NFTs have also plummeted by 97.4%.

Other notable investors are cutting their losses too. Deepak Thapliyal, a well-known figure in the NFT space, sold his CryptoPunk NFT at an 80% loss. Originally bought for a huge sum, it was resold for $3.9 million—still a significant hit.

Read More: What are NFT Primitives: 8 NFT Primitives You Should Know About

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New NFTs: The Gamble Continues

Despite the downturn, some are still betting on NFTs. Tron founder Justin Sun recently announced plans to launch a new NFT collection on the Tron network. But experts are warning investors to be extra cautious.

One major red flag in the NFT world is the rise of rug pulls, where project creators hype up their NFTs and then disappear with investors' money. These scams have become increasingly common, making it riskier than ever to invest in digital collectibles.

NFTs and Criminal Activity

Adding to the concern, NFTs have been linked to money laundering schemes. Some bad actors are using NFTs to clean money gained from illegal activities, further damaging the already shaky reputation of the industry.

FAQ

Q1: Why are NFTs failing?

A1: The market was overhyped, leading to a massive decline, with 96% of projects now dead or unprofitable.

Q2: Are any NFTs still profitable?

A2: Yes, NFTs like Azuki are still thriving, thanks to strong community involvement and smart strategies.

Q3: Should I still invest in NFTs?

A3: It’s risky—many NFTs have lost significant value, and scams are common. Do thorough research before jumping in.

Conclusion

The NFT market is in trouble, no doubt about it. Most projects are dead or dying, and many investors have lost significant money. While there are a few bright spots, like Azuki, the overall future of NFTs is still up in the air.

For those considering jumping into the NFT game, it’s more important than ever to do thorough research. With scams and volatility around every corner, investing in NFTs remains a high-risk move. Will NFTs make a comeback? Only time will tell, but for now, the hype seems to be well and truly over.

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