A third of NFTs are ‘dead’ and another caused losses to their original buyers

The NFT boom is deflating. Or rather the bubble that was created around them. The analysis firm Nansen ensures that a third of the NFTs analyzed have no or very little transaction volume. That is, one-third of NFTs, barring sudden surges in popularity, are dead, because no one – or very few people – trade with them.

This does not necessarily imply that these NFTs are worthless. A painting, even if it is not frequently exchanged and remains in the hands of the same person for years, retains its value. This same logic could apply to many NFTs.

Nansen’s data also reveals another curious reality. Another third of NFTs analyzed are trading below their quoted value. That is to say: those who acquired it at the time of its launch would lose money if they decided to resell it today.

the database analyzed by Nansen is composed of 8,400 collections with a total of 19.3 million NFTs in the block chain of Etherum. A large enough sample to draw general conclusions about current market dynamics.

That doesn’t mean NFTs are doomed

This reality does not mean that all NFTs are worthless or that the technology behind them has no potential both now and in the future. But that seems to reflect something many pundits have been pointing out for months: a huge percentage of the market is made up of meaningless projects.