Rollingstone.com Sparks Debate Over NFT Value Decline: A Closer Look
NFTs Aren’t Dead Just Yet (But the MSM Might Be)
The recent buzz created by a Rolling Stone article declaring NFTs as worthless certainly ruffled some feathers. However, the actual scenario is more nuanced and carries a more optimistic undertone.
Rollingstone.com stirred the pot today with a provocative article declaring the diminishing value of non-fungible tokens (NFTs). The piece titled, “Your NFTs Are Actually – Finally – Totally Worthless,” highlights a recent study by dappGambl, a finance expert community, and takes a deep dive into it.
Your NFTs Are Actually – Finally – Totally Worthless
The post has certainly struck a chord. As of the last update (around noon Thursday), it’s the top-trending article on their website and has clinched a high spot on Google’s search results. A quick search for “NFTs” propels this article to the forefront of the results page.
The article does have substantial data backing its claims, and the headline isn’t entirely off the mark, especially when judged by the often flexible standards of headline crafting. It’s somewhat accurate to say a majority of NFTs have lost their value. The study reveals that out of 73,257 NFT collections sampled, 69,795 have a market cap of zero ETH, which translates to 95% of the total. This leaves around 23 million people holding valueless NFTs, a hard pill to swallow for these investors.
Miles Klee, the author, points out, “Only 21 percent of the collections in the study can claim full ownership, implying that nearly four out of every five collections remain unsold.” He adds that buyers are now more discerning, shying away from projects lacking clear use cases, compelling narratives, or genuine artistic value.
Only 21 percent of the collections in the study can claim full ownership, implying that nearly four out of every five collections remain unsold.
However, the declaration of NFTs’ demise may be premature. While there’s a downturn in trading volumes, they haven’t flatlined. Data from The Block shows trading volumes hovered around $63 million last week, a dip from the $360 million-plus weekly volumes witnessed in February, but it’s far from being negligible.
Moreover, there’s the 5% of collections that retain value. The article mentions a decline in the marketing of less appealing cartoon ape NFTs, yet Bored Ape NFTs are holding a respectable trading position with an average price of about $42,000 for a Bored Ape Yacht Club NFT.
The fluctuating narrative around NFTs showcased in the post sheds light on mainstream media’s penchant for extremes, swinging from one end of the spectrum to the other to craft eye-catching headlines. Just last November, Rolling Stone proclaimed the NFT bubble had burst but highlighted the growing value for creators. Previously, it had celebrated its collaboration with the renowned Bored Ape Yacht Club NFT collection. Now, the narrative has swung to a more pessimistic outlook, laden with exaggeration.
This isn’t unfamiliar territory for those acquainted with the crypto realm. Bitcoin has faced its share of obituaries, yet continues to chug along with a price now exceeding $26,000 and a robust following.
The rollercoaster of highs and lows is part of the evolving crypto narrative, but dismissing NFTs entirely overlooks their inherent utility. NFTs provide a digital framework for tracking and trading both tangible and intangible items, a functionality with broad relevance beyond just the art market.