A new report by dappGambl, a community of crypto researchers and analysts, reveals that the majority of the Non-Fungible Tokens (NFTs)–digital assets that represent ownership or proof of authenticity of a unique item or piece of content using blockchain technology, typically on the Ethereum blockchain–market holds little to no value.

In the report titled, Dead NFTs: The Evolving Landscape of the NFT Market, dappGambl analyzed 73,257 NFT collections, but the authors found that 69,795 have a market value of zero Ether (ETH), Ethereum’s native cryptocurrency. Essentially, the vast majority, or 95%, of NFT collection owners possess assets that hold no intrinsic value. This stands in stark contrast to the bull market conditions of 2021 when NFT sales reached a staggering $25 billion in total value.

As the speculative crypto asset's popularity diminishes, the study suggests that the investments of 23 million individuals have now lost all their value. Additionally, the study highlights the struggles faced by creators, with only 21% of the surveyed collections able to assert full ownership by a buyer. This indicates that a significant 80% of NFT collections surveyed remain unsold. The study attributes this lack of sales to a surplus in supply compared to demand. Furthermore, the report observes that projects lacking clear use cases, compelling narratives or genuine artistic value are finding it progressively challenging to garner attention and generate sales, making buyers less inclined to make substantial purchases in such instances.

Beyond the increase in the need for justification of artistic value, NFT’s environmental impact has continued to draw criticism and concerns. The environmental concerns around NFTs largely depend on the underlying blockchain technology and the energy sources used for the validation of transactions. The report notes that about 200,000 NFT collections, which lack apparent owners, resulted in carbon emissions equivalent to what would be produced annually by 2,048 households or 3,531 cars.

As the discussion regarding the worth of NFTs evolves, their long-term value and sustainability will remain key subjects. The NFT ecosystem will be hard-pressed to demonstrate emission reduction strategies and substantiate the value of tokens beyond mere speculative hype.