A new study by DappRadar.
A data acquisition and analysis company that tracks the NFT industry, found that the top 100 most valuable NFT collections have lost less than half of their value from their all-time highs in November, while some have even gained in value. According to an investigation by DappRadar, the top 100 NFT collections together lost 15% of their value in the same period that the two most popular cryptocurrencies dropped nearly 50%. If the lowest-priced Bored Ape Yacht Club NFT is multiplied by 10,000, it equals the total number of cartoon apes in the collection, and that’s how it came up with its list of the top 100 NFT collections. Digital collectibles known as NFTs (non-fungible tokens) are tracked on a decentralised public ledger. In 2021, one NFT from the artist Beeple sold for $69 million, making it the most expensive NFT ever sold. According to a survey from Chainalysis, a blockchain analysis company, the NFT market topped $41 billion between January and December of last year.
Coincidence between NFTs and bitcoin is sometimes assumed.
In order to buy NFTs, you must have cryptocurrency, which both crypto and NFTs employ to prove ownership of an item on the blockchain. However, because each NFT is unique, they cannot be considered a form of digital currency. Because of this, it’s possible that crypto and the most valuable NFT collections are gradually operating in separate marketplaces.Follow the author’s updates on NFTs so you never miss a storey. MARCO QUIROZ-GUTIERREZ
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That artificial scarcity and NFTs are keeping the prices of these digital collections high is what DappRadar’s senior blockchain analyst Pedro Herrera told Fortune as a contributing author of the research. In particular, he cited celebrity endorsements as a factor in NFTs’ rise to public popularity.
When extrapolated to all collections, “celebrity adoption” will be a crucial step toward broad adoption, according to Herrera.
Many celebrities, like as Jimmy Fallon, Eminem, and Paris Hilton, now possess Bored Ape Yacht Club NFTs, and Justin Bieber, who recently purchased one for 500 ETH ($1.3 million), are among the latest to do so in 2021. The long-term value of NFTs suggests that they could be used as a “store of value,” like gold, when other markets are experiencing a slump. The top 100 NFT collections declined overall, while certain popular collections witnessed an increase in their dollar value, even as the currency used to purchase them, Ether, has decreased in value.
According to the research.
The dollar value of Bored Ape Yacht Club, Mutant Ape Yacht Club, World of Women, and Doodles has climbed since November. The Doodles collection, which was released in October of last year and has had a 223% increase in value since November, has seen the most growth of the four. Even while the value of the top collections appears to be holding, the NFT market has been plagued by frauds and rogue actors in the last few months.. More than 80% of NFTs made using the OpenSea’s free creation tool are spam, frauds, or fraudulent, according to the most prominent NFT marketplace, Herrea insists that while frauds in the NFT business occur, many NFT enterprises legitimately aim to create something unique and cultivate relationships with their audiences, despite the existence of these scams. “Ponzi schemes are constantly around,” he remarked. “There are always people to con. Projects like the ones we’ve talked about, on the other hand, are attempting to develop for the community.