Non-fungible tokens (NFTs) are different from fungible tokens in terms of traits and features. Aside from that, fungible and non-fungible tokens can be bought, stored, and sold on cryptocurrency exchanges and NFT marketplaces, respectively.
Their ability to be purchased by one party, which will reflect in the sales of another, means that NFTs, like fungible tokens, can lose their value.
In this guide, CryptoGuide GH examines some of the factors that can make NFTs lose their value,
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NFTs lose value due to a lack of novelty
A lack of innovation has led to so many NFT collections disappearing from the market. In 2016, the total number of NFTs in the market was less than ten (10). As of May 2025, the market boasts thousands of NFTs, with additional projects planned for 2025 and beyond.
Owing to the industry’s profitability in 2021, digital collectibles have emerged as a lucrative avenue for millions of creators, who greatly benefit from creator fees. Consequently, the market has seen an increase in non-innovative NFTs.
Aside from this, too many copycats have recreated already existing NFTs that generated record sales volumes for their creators and holders in 2021.
This lack of innovation has led to a plunge in the price of many NFT projects.
CryptoPunks, Axie Infinity, Rare Pepes, CryptoKitties, Spells of Genesis, SaruTobi, Eggs, Pixel Map, Curio Cards, Quantum, and Linagee Name Registrar are historical NFTs that have contributed to the foundation of the Web3 industry. That said, projects such as PHAYC and Phunky Ape Yacht Club (PAYC) are destroying the industry with duplicates of innovative collectibles.
OpenSea banned PAYC and PHAYC for copying the Bored Ape Yacht Club project. Banning the collectible affected the project’s price and plunged its value deeply into irrecoverable zones. Phunky Ape Yacht Club (PAYC) was priced around $480 on January 13, 2022. On 6th December 2022, PAYC was exchanging hands far below $20.
While the overall bearish NFT market is largely to blame for the decline, many NFT holders have been forced to sell their holdings due to a lack of innovation from companies like PAYC. The majority of collectors have reinvested money in other digital collectibles.
Minimal communication and promotion
Lack of marketing and a strong team to promote a project can also lead to a decline in NFT value. Before 2025, new startups were developing and launching NFT projects.
Global soccer star Cristiano Ronaldo jumped onto the NFT train in November 2022. Ronaldo boasts well over 600 million followers on Instagram alone. He has millions more on other social media platforms.
A Cristiano Ronaldo-backed NFT on Binance can easily outsell a project whose leaders fail to communicate or market their innovations.
Many NFT projects launched in 2016, 2017, 2018, 2019, and 2020, but their minimal communication and promotion resulted in below-average monthly sales volumes.
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Infinite competition in the NFT world
Infinite competition exists in any part of the blockchain-based economy, and NFTs still face competition from different creators.
If Axie Infinity, BAYC, Otherdeed, or NBA Top Shot dominated the NFT space, their sales volumes would have been relatively higher.
Unfortunately, many creators continue to add several innovative collections into the sector. Several others are also creating more NFTs without any real use or connection to a viable crypto project.
As the years roll on, many mainstream corporations with years of intellectual property, primarily in the entertainment industry, will enter the Metaverse. Once they enter the metaverse, they will also launch their NFTs.
Once this happens, the attention of collectors will shift from the usual BAYC and Top Shots, among others, to other NFTs from popular films and entertainers.
Thousands of NFT projects will fiercely compete for investments, likely causing most digital collection prices to plummet sharply.
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Conclusion: Are 90% of NFTs Worthless?
The market considers 90% of non-fungible tokens worthless today.
Iconic collections like CryptoPunks, BAYC, and NBA Top Shots still dominate, generating significant revenue and maintaining their popularity.
NFTs have become worthless because almost all blockchains have enabled smart contract technology.
Developers on multiple blockchains have added thousands of collections, further saturating the market with numerous new offerings and options.
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