NFT drops 2024: 98% are “dead” and only 0.2% have returned profits to investors

The State of 2024 NFT Drops report by NFTEvening, in partnership with Storible, reveals a sobering state of affairs in the Non-Fungible Token (NFT) market this year. Based on data from January to August 2024, only 0.2% of NFT drops returned profits to investors, while a staggering 98% were classified as "dead." The report analyzed 29,079 NFT drops using data from Dune Analytics and OpenSea.

This dismal performance is attributed to market oversaturation, with an average of 3,635 NFT collections released monthly. Despite high participation from creators, demand has not kept pace, leading to weak sales and rapid declines in value. Key findings show that 64% of 2024 drops have fewer than 10 initial mints, and nearly all collections see a price drop of at least 50% within their first three days. Only 11.9% of actively traded NFTs have proven to be profitable.

While some collections, such as the record-breaking sale of CryptoPunk #1563 for 24,000 ETH ($56.3 million in October), highlight rare success stories, these instances are outliers in an otherwise grim market landscape. The report underscores the need for caution and selectivity among investors as the NFT space continues to grapple with excess supply and diminished demand.

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