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Arkham

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<ul> 
 <li style="font-weight: 400;">Analysts noted that 96% of NFTs were on silent death while 43% remained unprofitable.</li> 
</ul> 
The rapid evolution of digital space has captivated researchers’ interest in examining the afterlife of major crypto concepts such as nonfungible tokens (NFTs). For the last two years, NFT has become the biggest loser in the crypto market, ending the hype surrounding this asset. 
Dispelling the doubt surrounding NFT’s longevity, the renowned tech media company NFT Evening conducted an extensive study to examine the profitability and the factors stifling the growth of digital collectibles. 
<h2 id="b-factors-contributing-to-the-collapse-of-nfts-sector-b">Factors Contributing to the Collapse of NFTs Sector&nbsp;</h2> 
The researchers monitored the performance of 5000 NFTs to assess their profitability, market trends, and risk related to this class of crypto assets. From the study, the experts from the NFT Evening noted that 96% of NFT projects were at their deathbed, and&nbsp; 43% of these assets remained futile.&nbsp; 
The shocking discovery prompted the researchers to dig deep to assess the profit generated from the NFT project over time. The team noted that the silent death of NFT exposed the investors to 44.5% losses.&nbsp; 
They noted that the largest losses were witnessed in 2023 after one-third of the NFTs were severely strained to remain afloat. The exit of these NFTs from the crypto sector diminished the lifespan of the digital&nbsp;collectibles to 1.14 years, NFT Evening revealed. This implies that NFTs’ lifespan is shorter than significant crypto investments by 2.5 times. 
<img decoding="async" src="https://ideogram.ai/assets/image/lossless/response/KZC4rypcTeK_CnsgzfEiMQ" alt="Experts Say 96% of NFTs are Dead: What’s Driving the Shift? = The Bit Journal" title="Experts Say 96% of NFTs are Dead: What’s Driving the Shift? 38"> 
Besides analyzing the lifespan of the NFT project, the researchers identified profitable NFTs such as <a href="https://coinmarketcap.com/currencies/azuki/" rel="nofollow noopener" target="_blank">Azuki</a>. A recent report shows that Azuki’s return on investment (ROI) nearly tripled, profiling the digital collectible as the most profitable NFT. CoinMarketCap data shows Azuki’s total supply surpassed $11 million and traded at $0.0020. 
<h2 id="strong-what-will-the-future-of-nfts-be-strong">What Will the Future of NFTs be?</h2> 
Compared to other NFTs, the Azuki has embraced a unique community approach, encouraging the key stakeholders to contribute towards the success of this NFT. Azuki has emerged as Ape Yacht Club, CryptoPunk, and Pudgy Penguins’ top rival. 
However, the Pudgy Penguins exited from the list of fast-paced NFTs after it slipped by 97% in May. The dramatic twist was triggered by Pudgy Penguins’ prolonged losses.&nbsp; 
The researcher profiled Pudgy Penguins as a dead project. They observed that the PFP version of NFT had witnessed a sharp decline, shedding their value by double digits.&nbsp; 
As such, the blockchain intelligence firm Arkham Intelligence revisited the $2 million NFT purchase made by renowned singer Justin Bieber two years ago. The Arkham team noted that the value of these NFTs dropped from $2 million to $100,000 a 94.7 % decline. 
The investment exposed Bierber to a substantial loss since he had invested in BAYC and MAYC, which depreciated by 89.7% and 97.4%, respectively. The unexpected devaluing of major NFTs has forced some investors to dispose of them. 
<img decoding="async" class="aligncenter" src="https://ideogram.ai/assets/image/lossless/response/rxEv1z_NTbuzKwwNk2w3Ng" alt="Experts Say 96% of NFTs are Dead: What’s Driving the Shift? = The Bit Journal" title="Experts Say 96% of NFTs are Dead: What’s Driving the Shift? 39"> 
Earlier last month, the sole investor of CryptoPunk, Deepak Thapliyal, sold his NFT at an undisclosed amount after shedding its value. On X, the community noted that Thapliyal’s CryptoPunk was purchased by an investor named ‘VOMBATUS’ at $3.9 million, an 80% loss over the initial purchase price.&nbsp; 
<h2 id="strong-experts-warn-investors-from-investing-in-nfts-strong">Experts Warn Investors from Investing in NFTs</h2> 
While others exit the NFT market, some investors have announced the launching of their digital collectibles. The founder of Tron, Justin Sun, recently announced the launching a new NFT on the Tron network. 
 Based on the NFT Evening research, the investor must conduct intensive research before investing in these assets. The study noted that rug pull thefts have been common with NFT. 
A rug pull is a project where the founder escapes with money after hyping their NFTs. The researchers said that criminals have commonly used NFT to ‘wash’ money generated from unlawful activities.&nbsp; 
 The NFT evening urged investors to be vigilant when investing in NFTs due to the unclear rules. For more updates on the future of NFTs, follow <a href="https://thebitjournal.com/">The Bitjournal</a>.

Experts Say 96% of NFTs are Dead: What’s Driving the Shift?

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The Bit Journal

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