The news article highlights the cyclical nature of the non-fungible token (NFT) market, with the majority of NFTs becoming worthless between market cycles. The author argues that the focus should be on the disappearance of 94% of the market’s value, rather than the “95% worthless” narrative. The Forkast 500 NFT Index, which represents the top 500 NFT collections, shows that the NFT market has lost nearly 94% of its value since its peak in 2022. However, the article also points out that the NFT market has seen significant growth in terms of unique buyers, sales, and transactions, indicating continued belief in the future of NFTs.
The article emphasizes the need to measure the value of NFTs not only from their peak value to the present, but also from their initial low value. When comparing data from 2020 to 2023, it is revealed that unique buyers have increased by 10,100%, sales by 31,837%, and total transactions by 52,304%. Despite the lack of trade profits, collectors and traders have not left the NFT economy, indicating a belief in the potential of NFTs. The article concludes that while the value of the NFT ecosystem has decreased from its peak, NFTs still have the power to revolutionize various industries.
In terms of recent developments in the NFT market, the article mentions declining sales for the fifth consecutive week, but notes that there has been some stabilization overall. The goal is to reach the sales range seen in early 2021. The article also highlights new collections and trading activity on different blockchains, such as Solana and Ethereum. Additionally, there is mention of a proposal to change the Ordinals numbering system and replace BRC20s with Runes, which has sparked debate within the NFT community.