Remember when NFTs sold for millions of dollars? 95% of the digital collectibles are now probably worthless.

• Most NFTs are now likely worthless, less than two years after a massive bull run in the digital collectibles.
• A new study found 95% of over 73,000 NFT collections have a market cap of 0 ETH.

Are NFTs dead?

A recent study looking at the price of thousands of collections seems to suggest the answer is, "yes."

A report by dappGambl found that 95% of non-fungible tokens are effectively worthless. Out of 73,257 NFT collections, 69,795 of them have a market cap of zero ether, based on data provided by NFT Scan and CoinMarketCap.

By their estimates, almost 23 million people hold these worthless assets.

"This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space," the researchers said. "Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses."

NFTs are digital representations of art or collectibles tied to a blockchain, typically ethereum, and each one has a unique signature that cannot be duplicated. In 2021 and 2022, the NFT market saw a huge bull run, at one point leading to $2.8 billion in monthly trading volume.

During that time, popular collections like Bored Apes and Cryptopunks were selling for millions of dollars, and celebrities like Stephen Curry and Snoop Dogg participated in the hype. The boom coincided with cryptocurrency's peak, when bitcoin was trading close to $70,000. On Wednesday, the price of the crypto hovered just above $27,000.

But as dappGambl's study shows, that's all come crashing down. Currently, 79% of all NFT collections remain unsold, and the surplus of supply over demand has created a buyer's market that isn't doing anything to revive enthusiasm.

Even filtering out the lower-value, less significant projects, most collections have little value today. Out of the top 8,850 collections by market cap, 18% are worthless, and 41% are priced at $5-$10.

Fewer than 1% have a price tag above $6,000 — a far cry from the regular million-dollar deals of two years ago.

"It becomes clear that a significant portion of the NFT market is characterized by speculative and hopeful pricing strategies that are far removed from the actual trading history of these assets," the researchers said.

"Additionally, this apparent disconnect between listed prices and actual sales could suggest that many sellers are waiting for another massive surge in NFT interest akin to the boom witnessed in 2021, which may not ever occur again."