98% of 2024 NFT Drops Are Effectively Dead, Report Shows

The recent findings on the state of the 2024 NFT market paint a sobering picture for digital asset enthusiasts and creators. The study by NFTEvening and Storible reveals that nearly 98% of NFT collections launched this year have become effectively "dead"—marked by little to no trading activity since September. This highlights a significant downturn from the previous speculative boom in NFTs.

The research indicates that oversaturation is a primary culprit, with an average of over 3,600 collections released monthly, surpassing market demand and leaving new projects struggling to attract buyers. Compounding the issue is that 64% of 2024's drops sold out in under 10 minutes but failed to generate sustained interest, and a staggering 98% saw fewer than 10 trades in their debut week.

Profitability is a rare achievement, as just 0.2% of these collections delivered returns for investors, and only 11.9% of "alive" projects showed profitability. Most NFTs experienced severe price drops within days of release, reflecting waning market enthusiasm and suggesting that speculative trading is no longer sustainable.

The findings underscore a potential market transition. Future success may hinge on building sustainable communities, offering genuine utility, and shifting away from short-lived hype-driven sales. The data points to a need for innovation beyond simple collectibles, as creators and projects seek to deliver lasting value in a crowded and competitive landscape.

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