2024 NFT
REPORT

are NFTs Dead !?

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The market for non-fungible tokens (NFTs) has experienced both rapid growth and sharp declines in the past few years. Despite the initial excitement and substantial funding, the NFT market now faces considerable instability.

In our comprehensive analysis of over 5,000 NFT collections and 5 million NFT transactions, we explore the overall longevity of NFTs.

KEY FINDINGS

96% of NFTs are dead.

The average lifespan of an NFT is 1 .14 years, which is 2 .5 times shorter than the average lifespan of crypto projects.

2023 saw the highest number of dead NFTs,
with nearly one-third of them dying that year.

WHAT WE DID

We examined over 5,000 NFT collections and collected 5 million transactions from NFTScan.

We then determined whether they were "Dead" based on the following three criteria

  • Zero trading volume
  • Low 7-day sales
  • No activity on Twitter for the last 3 months

THE DECLINE OF NFTS:
96% OF NFTS ARE DEAD

The decline of the NFT market is further evidenced by the number of dead NFTs. An alarming 96% of NFTs are considered dead.

This trend peaked in 2023 when 30% of NFTs were dead. The following table outlines the yearly percentage of dead NFTs:

AN ALARMING
96% OF NFTS ARE considered Dead!

alarming-96-of-nfts-are-considered-dead

Additionally, the average lifespan of an NFT is notably short. The average lifespan of an NFT is now 1.14 years, which is 2.5 times shorter than the average lifespan of traditional crypto projects. This short lifespan reflects the intense speculative nature of NFTs, where rapid price fluctuations and the novelty of digital assets fail to sustain long-term value.

THE AVERAGE LIFESPAN OF AN NFT IS NOW 1.14 YEARS, WHICH IS 2.5 TIMES SHORTER THAN THE AVERAGE LIFESPAN OF TRADITIONAL CRYPTO PROJECTS.

the-average-lifespan

CONCLUSION

The data paints a clear picture: the NFT market previously praised as the future of digital ownership and investment, is encountering significant difficulties. The short lifespan of NFTs suggests that the market may not be the golden goose many had hoped for.

Moving forward, investors must proceed with caution and for the market to strive for more stable and sustainable practices. The rise and fall of NFTs serve as a reminder of the potential risks involved in emerging digital markets and the need for due diligence and realistic expectations.

conclusion

METHODOLOGY

In this research, we collected a comprehensive list of over 5,000 Ethereum NFTs from NFTscan, including their floor price, market cap, and trading volume.

We defined an NFT as "dead" if it met any of the following criteria:

  • Trading volume equals 0
  • 7-day sales are fewer than 20
  • No activity on Twitter for the last 3 months

Following this, we calculated their lifespan by determining their start and end dates, defined as follows:

  • Start: Domain registration date
  • End: Last post date on Twitter