2024

bullish

Percent

<ul>
 <li>96% of NFTs are inactive, showing low trading and social media activity.</li>
 <li>The 2023 market saw a surge in dead NFTs, indicating high volatility.</li>
</ul>
The NFT market is facing a severe crisis, with a staggering 96% now considered “dead”, according to NFT Evening’s 2024 <a href="https://nftevening.com/are-nfts-dead-2024/" target="_blank" rel="noopener noreferrer nofollow">report</a>. This designation applies to NFTs that exhibit no trading volume, minimal sales over seven days, and almost no social media activity. The report analyzed more than 5,000 NFT collections and approximately 5 million transactions, revealing the market’s significant downturn.
The financial impact on holders is equally concerning. About 43% of owners are currently experiencing losses, with an average investment decline of 45%. This is a stark contrast to the bullish sentiments of previous years. The data shows that the average lifespan of an NFT project is just 1.14 years, which is 2.5 times shorter than traditional cryptocurrency projects. This short lifecycle highlights the challenges NFTs face in retaining value over time.
<h3 class="wp-block-heading" id="h-the-lifespan-of-nfts-a-rapid-decline">The Lifespan of NFTs: A Rapid Decline</h3>
The year 2023 proved particularly disastrous, with nearly one-third of all NFTs being declared “dead” within that year alone. The rapid <a href="https://thenewscrypto.com/will-solana-nft-market-rebound-after-august-decline/" target="_blank" rel="noopener noreferrer nofollow">decline</a> of these digital assets has left many investors questioning their long-term viability. For instance, once-popular collections like Pudgy Penguins have seen their values plummet, with some holders suffering losses as high as 97%. Even stalwarts like <a href="https://x.com/cryptopunksnfts" target="_blank" rel="noopener noreferrer nofollow">CryptoPunks</a> have not been immune to this downturn, selling at record lows.
While the market struggles, certain projects have managed to maintain some level of engagement and value. Collections like Azuki, for example, have continued to thrive due to strong community involvement and effective marketing strategies. However, these are exceptions in an otherwise bleak landscape.
The market’s volatility and the rapid devaluation of assets have led to increased skepticism about the sustainability of NFTs as a viable investment. While some projects may recover, the majority seem to be on an irreversible decline. Despite the potential for NFTs to revolutionize <a href="https://thenewscrypto.com/is-the-sec-lagging-behind-in-digital-asset-regulation/" target="_blank" rel="noopener noreferrer nofollow">digital</a> ownership and royalties for artists, the current market conditions suggest that the road ahead will be challenging.
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NFT Market Collapses as 96 Percent of NFTs Become Inactive

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