The NFT market appears to be in a serious slump, according to a recent NFT Evening study, with over 96% of NFTs deemed “dead.” The NFT market has gone through cycles of boom and bust over the last four years, and it is currently going through a time of extreme volatility.
NFT Owners Are Losing a Lot of Money
After a thorough examination of over 5 million transactions and 5,000 NFT collections, NFT Evening discovered a sharp drop in profitability. The research emphasizes the erratic character of the market by pointing out that 43% of NFT holders are now losing money. These investors experience losses on their investments of 44.5% on average.
The study emphasizes the NFT market’s inherent hazards and erratic dynamics even further. The average longevity of an NFT is 1.14 years, which is 2.5 times less than that of standard crypto projects, according to the report.
The Growing Number of “Deaths” from NFT in 2023
The highest percentage of NFTs “dying” occurred in 2023, when almost one-third of them became inactive. This pattern illustrates how highly speculative NFTs are, with quick price swings and the novelty of digital assets failing to maintain long-term value.
The market might not be as profitable as it once was because of the huge percentage of holders who are not profitable, the large difference between collections that succeed and those that fail, and the brief lifespan of these digital assets.
Is Tron, Justin Sun’s invention, up to the task?
With his pledge to bring back the NFT market on the Tron blockchain, Justin Sun, the founder of Tron, is bringing some optimism amidst the general unpredictability and market downturn. Sun thinks that the present recession would be a good opportunity to start high-caliber initiatives that will appeal to enthusiasts and collectors both.
Sun hasn’t given away all the specifics of the TRON NFT project, but he did say that it will solve some of the drawbacks of the existing platforms, like exorbitant transaction costs, scalability problems, and poor user experiences. This project has the potential to have a big impact on the NFT industry by drawing in new investors and accelerating the development of the Tron platform.
Complementing TRON’s Extended Approach
The possible introduction of a native NFT project would also be consistent with TRON’s overarching plan to increase user base size and broaden its range of products.
