98% of NFT Projects in 2024 Have Failed — Report

A study by NFTEvening in collaboration with Storible has revealed shocking results: the overwhelming majority of new NFT projects launched in 2024 have not stood the test of time.

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A study by NFTEvening in collaboration with Storible has revealed shocking results: the overwhelming majority of new NFT projects launched in 2024 have not stood the test of time. An analysis of 29,079 new collections highlights critical challenges in the evolving digital asset market. What's next?

An Oversaturated Market

According to the study, an average of 3,635 NFT collections were created monthly between January and August 2024. Despite the enthusiasm of creators, this abundance led to market oversaturation. Supply significantly outpaced demand, leaving many projects struggling to attract attention and buyers.

The situation is further exacerbated by the fact that 64% of new NFT projects had fewer than 10 mintings, and 98% completed fewer than 10 transactions within the first week of launch. Experts suggest this indicates a lack of interest from both communities and investors. Additionally, in 98% of cases, prices dropped by more than 50% within the first three days, while 84% of projects saw their peak price equal to the mint price, meaning no price growth after launch.

State of 2024 NFT Drops. Source: NFTEvening

At the same time, only 0.2% of NFT projects in 2024 brought profits to investors. Even among "active" projects still being traded, only 11.9% have proven profitable.

Reasons for Failures and the Future of the NFT Market

In addition to the sheer volume of collections oversaturating the market, experts point to a lack of uniqueness as a primary reason for such outcomes. Many collections fail to offer anything new or valuable to users, leading to a lack of interest and quickly fading activity.

However, there is hope for change in the coming years. The well-known digital artist Beeple previously noted that speculators have left the market, leaving the ecosystem to serious collectors. These collectors, he said, understand NFTs as a technology and see them as a way for artists to express themselves. This shift, according to Beeple, might lead to a revival of the market.