The NFT market, once a thriving digital art and collectibles space, has plummeted into a state of utter despair. A recent report reveals a staggering 95% of NFT projects now hold zero market value, with trading volume nosediving by 97% since 2021. This drastic decline raises questions about the market's future and whether it's facing extinction or just a temporary setback.

The NFT frenzy of 2021, fueled by Beeple's $69 million digital collage sale and stories of overnight millionaires, has fizzled out. Today, the average NFT sale struggles to reach $200, a far cry from the seven-figure sums of yesteryear. Daily sales have plummeted from 87,000 in 2021 to a mere 2,000 in 2024, leaving the market in a state of utter desolation.

The blame for this downturn lies with several factors, including the broader crypto market slump, economic uncertainty, and geopolitical tensions. However, the NFT market's woes may run deeper, with critics pointing to a saturation of low-quality projects and a lack of utility for many NFTs beyond bragging rights.

Despite the bleak landscape, there's a glimmer of hope. Historical trends in the crypto market suggest that periods of decline are often followed by resurgence. A return of retail investors, willing to take on higher risk for potentially high rewards, could breathe new life into the market. However, this hinges on a recovery in the broader market and a renewed sense of optimism among investors.

The future of NFTs is not without its challenges, with regulatory scrutiny from the US government casting a long shadow. Finding the right balance between protecting investors and fostering growth will be crucial for the NFT market's future. As the market navigates this reckoning era, it's unclear whether NFTs will develop into a strong asset class with practical applications or become just another digital memory.