The once-booming non-fungible token (NFT) market is facing an unprecedented crisis, with a shocking 96% of NFTs now considered “dead.”

This digital extinction event comes as nearly half of NFT holders grapple with significant financial losses, casting a long shadow over the future of digital ownership and blockchain-based assets, according to a report by NFT Evening.

According to a recent study examining over 5,000 NFT collections and 5 million transactions, 96% of NFT projects are now considered “dead.”

The study, which assessed NFTs based on trading volume, recent sales and social media activity, found that the vast majority of NFTs no longer show signs of market viability.

Financial data from the report paints a grim picture for NFT investors.

Over 43% of NFT holders are currently unprofitable, with the average holder experiencing a 44.5% loss on their investments.

The lifespan of NFTs has also come under scrutiny.

The average NFT now lasts just 1.14 years, which is 2.5 times shorter than traditional cryptocurrency projects.

This brief existence speaks to the rapid turnover and potential lack of long-term value in many NFT projects.

Also Read: Bitcoin, Ethereum Pull Back: Crypto Market Faces Turbulence Amid Economic Uncertainty

The year 2023 marked a particularly challenging period for NFTs, with nearly one-third of all “dead” NFTs meeting their demise during those 12 months.

While some NFT collections have managed to maintain profitability, the disparity between successful and failing projects is stark.

The Azuki collection stands out as the most profitable, with holders seeing over 2.3 times the profit on their investments. In contrast, holders of Pudgy Penguins NFTs are facing a 97% loss, making it the most unprofitable collection analyzed in the study.

As the industry grapples with these sobering statistics, many are looking ahead to events like Benzinga’s Future of Digital Assets conference on Nov. 19.

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