Summary of La caída de los NFTs: más del 90% ya no valen nada | Entrepreneur

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    The NFT Market's Decline

    The explosive growth of non-fungible tokens (NFTs) in 2022 appears to be a thing of the past. According to a report by NFT Evening, a staggering 96% of NFT projects are considered "dead".

    • The report analyzed 5,000 NFT collections and five million transactions.
    • Factors like the profitability of NFT holders, longevity of projects, and the overall market performance were considered.

    The High Failure Rate of NFT Projects

    The report highlights the high failure rate of NFT projects, with a significant number of projects failing to deliver returns for their holders.

    • A concerning 43% of NFT holders haven't made profits, experiencing an average loss of 44.5%.
    • NFT projects have a much shorter lifespan compared to other digital assets like cryptocurrencies. The average lifespan of an NFT project is only 1.14 years, less than half the lifespan of most cryptocurrency projects.
    • The failure rate reached its peak in 2023, with one-third of all projects "dying" that year.

    Successful NFT Projects

    Despite the overall decline in the NFT market, there are some notable exceptions. Several projects have managed to thrive even in a challenging market.

    • The Azuki NFT collection has proven incredibly profitable, with an average return on investment (ROI) of 2.3 times for holders.
    • Azuki's success is attributed to its strong community engagement and effective marketing strategies.
    • The collection achieved $1.13 million in sales in May alone, with total sales exceeding $1 billion.

    Top Performing NFT Collections

    Other noteworthy projects maintaining their popularity include:

    • CryptoPunks
    • Bored Ape Yacht Club

    These high-value NFTs continue to attract investors despite the market downturn, demonstrating their enduring appeal.

    The Future of NFT Investment

    While the NFT market is experiencing a challenging period, new projects are still emerging. The report highlights some recent notable launches:

    • Donald Trump's America First NFT collection
    • A new project announced by Justin Sun, founder of Tron

    These launches indicate that there is still interest in the NFT market. However, the report emphasizes that investors need to exercise caution and conduct thorough research before investing in any NFT project.

    Key Takeaways

    The NFT market is currently experiencing a period of decline, with a large percentage of projects failing to deliver returns. However, successful projects like Azuki and high-value NFTs like CryptoPunks and Bored Ape Yacht Club continue to attract interest. Investors should approach NFT investments with caution and conduct thorough research before committing their funds.

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