MICA Daily | Report Analysis: This year's Non-fungible Token issuance has 98% facing losses

Although the price of BTC has surged significantly in 2024, the Non-fungible Token market has not benefited from this wave of capital frenzy. Instead, it faces severe challenges this year. According to a research report by Non-fungible Tokenevening and digital PR agency Storible, approximately 29,000 Non-fungible Token series have been launched so far this year, but only 0.2% of the series have achieved profitability. Even for Non-fungible Tokens that still have trading activities, only 11.9% have seen price gains.

Research shows that the market is oversaturated, with an average of 3,635 new Non-fungible Token series added globally each month. However, 98% of the new issuance Non-fungible Tokens failed to make a profit, and the volume has returned to zero since September. The majority of Non-fungible Tokens experienced a price drop of over 50% within 3 days after issuance, and 84% of Non-fungible Tokens failed to appreciate in value, with their highest price being the same as the issuance price.

The report suggests that the enthusiasm in the Non-fungible Token market has significantly declined. Over 70% of Non-fungible Token issuances have been traded less than 10 times, and the daily trading volume on mainstream platforms like OpenSea has dropped by 76.32% compared to the beginning of the year. Additionally, 64% of Non-fungible Token series have minted less than 10 pieces. Despite the strong recovery in the encryption currency market and BTC reaching a new high of $93,477, Non-fungible Token traders have not benefited. The report points out that the reasons include excessive issuance in the market, increased fraud, and economic pressures, among other factors. It remains to be seen whether the market can return to its glory in 2021.

Disclaimer: The article only represents the author's personal views and does not represent the objective viewpoint and position of Block. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and the author and Block will not bear any responsibility for the direct or indirect losses caused by investors' transactions.

MICA Daily | Report Analysis: 98% of this year's issuance Non-fungible Tokens are facing losses. This article was first published in Blocktempo.