Rolling Stone’s recent post proclaiming the death of non-fungible tokens (NFTs) has taken the internet by storm.
Titled “Your NFTs Are Actually – Finally – Totally Worthless,” this article delves into a new study conducted by dappGambl, a community of finance experts.
It’s safe to say that the piece has garnered substantial attention.
As of this writing, it sits atop the trending charts on Rolling Stone’s website and even claims the number one spot on Google’s search results when you type in “NFTs.”
But is the headline really telling the whole story, are NFTs still a thing?
Let’s take a closer look.
Separating Fact from Fiction
To be fair, the Rolling Stone headline, by the standards of attention-grabbing headlines, isn’t entirely off the mark.
It’s somewhat true that a significant portion of NFTs currently circulating the digital realm holds little to no value.
The dappGambl study found that out of a sample of 73,257 NFT collections, a staggering 95% had a market capitalization of zero ETH.
That’s almost the entirety of the NFT market, leaving approximately 23 million people holding NFTs that essentially serve as digital placeholders in their wallets – not exactly a rewarding experience for these investors.
Miles Klee, the author of the Rolling Stone article, astutely points out, “Just 21 percent of the collections included in the study can claim full ownership, meaning around four out of every five collections remain unsold.”
With buyers becoming increasingly discerning, it’s evident that projects lacking clear use cases, compelling narratives, or genuine artistic value struggle to attract attention and sales.
NFTs: Not Dead, Just Evolving
But does this mean NFTs are completely dead in the water, as Rolling Stone seems to imply?
While it’s true that trading volumes have dipped compared to earlier peaks, they are far from non-existent.
Data collected by The Block shows that trading reached approximately $63 million last week.
Admittedly, this is a significant drop from the heady days of February, when weekly volumes exceeded $360 million.
Nevertheless, it’s worth noting that there’s still a pulse in the market.
Moreover, there’s the overlooked 5% of NFT collections that continue to hold substantial value.
The Rolling Stone article mentions how “you don’t see people hawking ugly cartoon apes on the internet as much anymore.”
However, Bored Ape NFTs, which include those so-called “ugly cartoon apes,” are still trading quite respectably.
In fact, the average price of a Bored Ape Yacht Club NFT hovers around $42,000.
This is a testament to the enduring appeal and value of certain NFT projects, even in a market that’s experienced a downturn.
The Media’s Love Affair with Extremes
The Rolling Stone article brings to light a broader issue: the tendency of mainstream media to sensationalize and oversimplify complex topics.
In their quest for headlines that captivate and shock, publications often resort to presenting extreme viewpoints.
It’s a pattern we’ve seen repeated in the cryptocurrency world time and again.
For instance, Bitcoin has been declared dead on numerous occasions, yet it continues to thrive.
It boasts millions of dedicated followers, and its price recently surpassed $26,000, proving that it remains a formidable force in the financial landscape.
While Bitcoin has certainly faced its share of highs and lows, the notion that a technology as transformative as NFTs will disappear completely is, frankly, absurd.
NFTs: More Than Just Digital Art
The true essence of NFTs goes beyond the simplistic portrayal of digital art collectibles.
At their core, NFTs are a digital innovation that serves as a wrapper for both physical and non-physical items, allowing them to be tracked, verified, and traded on the blockchain.
This concept holds profound implications far beyond the art world.
NFTs have the potential to revolutionize various industries, from real estate to supply chain management.
NFTs offer the ability to represent ownership, provenance, and authenticity in a digital realm.
This could lead to entirely new ways of exchanging and valuing assets, making transactions more transparent and secure.
It’s a technological leap that has the potential to disrupt traditional systems across multiple sectors.
The Nuanced Reality
The bigger story here is that media outlets are increasingly losing credibility due to their penchant for cherry-picking extremes when the real world is often nuanced and complex.
Within the cryptocurrency space, many have already begun tuning out the constant barrage of sensational news.
As my colleague Dan Kuhn recently wrote, “People are building, developing, and ignoring whether the media says the world is up or down.”
The reality for these innovators isn’t dictated by a journalist’s perspective; they focus on the technology and its practical applications.
Our (PerseusCrypto Team) Opinion
NFTs: Still in the Game or Fading Away?
So, the question on many minds is, “Are NFTs still a thing, or have they met their demise?”
The answer, as is often the case with matters in the crypto world, isn’t a straightforward one.
The Hype and the Hush
NFTs, or non-fungible tokens, burst onto the scene with unparalleled excitement.
Digital art, collectibles, virtual real estate—these tokens promised to revolutionize ownership and authenticity in the digital world.
With high-profile sales making headlines and artists and creators flocking to join the NFT movement, it seemed like NFTs were poised for an indefinite reign.
Reality Check: Not All Shine Forever
However, as the dust settles and the initial euphoria wanes, we’re faced with a more sobering reality.
It’s true that a significant percentage of NFTs currently available in the market have minimal or no trading activity, leaving some to question their value and relevance.
The hype around NFTs might have led to a flood of projects, many of which lack substance and utility.
Survival of the Fittest
Yet, it’s crucial to recognize that not all NFTs are created equal.
While some may have fallen by the wayside, others continue to thrive.
Projects with strong communities, genuine use cases, and innovative approaches to the NFT space are holding their ground.
These tokens are a testament to the enduring potential of NFTs beyond the initial frenzy.
The NFT Evolution
NFTs are undergoing a natural evolution.
Like any nascent technology, they face growing pains and adjustments.
Market corrections and shifts in interest are part of the process.
However, this doesn’t mean NFTs are dead; rather, they are maturing.
So, are NFTs still a thing?
Yes, in our opinion they absolutely are!
However, they are evolving from the initial hype-driven gold rush into a more sustainable and nuanced ecosystem.
It’s a world where quality matters more than quantity, where innovation and utility define success, and where NFTs continue to play a transformative role in various industries beyond digital art and collectibles.
In the grand scheme of blockchain technology, NFTs are still very much in the game.
Their journey is far from over, and their impact on how we define ownership and authenticity in the digital age remains significant.
So, keep your eye on NFTs—they may have grown quieter, but they’re far from fading away.
In conclusion, NFTs are far from dead.
While it’s true that a significant portion of the market currently consists of NFTs with little to no value, this is not the end of the road for this transformative technology.
NFTs offer a novel way to represent ownership and authenticity in the digital realm, with implications that stretch beyond the world of art and collectibles.
The decline in trading volumes is merely a natural phase in the market’s evolution.
The real issue at hand is the sensationalism and oversimplification of complex topics by mainstream media outlets.
Rather than seeking out extremes for headlines, it’s crucial to recognize the nuanced nature of the world we live in.
The crypto community is forging ahead, undeterred by the media’s oscillation between extreme optimism and pessimism.
Ultimately, it’s the technology and its real-world applications that will shape the future of NFTs and the broader blockchain ecosystem.
And that’s a reality worth paying attention to, regardless of what sensational headlines may suggest.