NFT market collapse wipes out 97% of Bored Ape Yacht Club's peak value

Four years ago, non-fungible tokens (NFTs) were a booming market, backed by celebrities and high-profile investors. Trading volumes once soared above US$2.7 billion, with collections like Bored Ape Yacht Club fetching record prices. But today, the scene looks very different—many of these digital assets have lost nearly all their value.

At its peak, the NFT market saw massive activity, with collections like Bored Ape Yacht Club selling for as much as US$394,764 per item. Now, Forbes reports its floor price has plunged to just US$12,000—a 97% drop from its all-time high. Other major collections have suffered similar fates: CryptoPunks are down 89%, while Mutant Ape Yacht Club has lost 98% of its value.

In 2023, research revealed that 95% of 73,000 NFT collections were worthless, valued at zero ether. Experts, including University of Otago senior lecturer Olivier Jutel, describe the decline as dramatic and unlikely to recover. Factors like market downturns, tighter regulations, fading hype, and economic pressures such as inflation and rising interest rates have all played a role.

Despite the crash, some still see potential in the space. Former All Black Dan Carter co-founded Glorious, a platform helping artists sell digital art as NFTs. The project attracted investment from rich-lister Craig Heatley. Meanwhile, Brooke Howard-Smith launched NF Labs, partnering with Fluf World NFTs and rapper Snoop Dogg in an attempt to revive interest.

The NFT market has shifted dramatically since its peak, with once-high-value collections now trading at a fraction of their former prices. While some investors and entrepreneurs continue to explore opportunities, the sharp decline in value suggests a much smaller, more cautious market moving forward.