The allure of owning a piece of the internet took the world by storm in the early 2020s, with tech enthusiasts, celebrities, and even normal people spending real money to buy into the idea.
According to various sources, more than 95% of NFT collections can be considered dead because there is no trading volume, interest, nor any underlying value or utility.
However, some of the most iconic collections achieved cult status and have retained significant value, such as in the case of Crypto Punks, Bored Ape Yacht Club, Azuki, and a few others. In this analysis, we’ll research the reasons behind the failure of most of the NFT projects, understanding the challenges and the rise and fall of them.
But with concerns about market saturation and copyright issues looming, some question whether the NFT craze has reached its peak. Is it time to reality time to hit pause on these pixel investments and think about their future?
This article delves deep into what happened to NFTs, exploring the rise, fall and future of this once-promising digital token business.
The surge in interest surrounding NFTs sparked a digital revolution in the early 2020s, offering creators unprecedented opportunities for monetisation and ownership in the metaverse.
As the tokens gained popularity, celebrities were jumping on board too, and people around the world were suddenly interested in the technology
The first NFT collections represent a new paradigm shift and can be considered “cults”. Collections such as the Crypto Punks or the Bored Ape Yacht Club actually innovated the digital art sector and created a sense of community and innovation among members. However, the market quickly became saturated, with thousands of collections offering no new utility or competitive advantage.
So, are NFTs dead?
While the market may have cooled, NFTs are not dead. Instead, they are transitioning from a speculative bubble to a more stable and functional technology with diverse applications.
The future of NFTs will likely be shaped by projects that can demonstrate real-world utility, transparency, and value beyond mere speculation.
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