Are Your NFTs Worthless? How to Analyze Their Value

Are Your NFTs Worthless? How to Analyze Their Value
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Let’s pick up the pieces and analyze if there’s any value left in your NFT investments

The numbers are low. Our NFT Industry report shows that the market’s trading volume decreased by 75% or $2 billion during Q3 2022. Where did the value of your NFTs go? Are the only valuable collections from Yuga Labs now? Why does the Metaverse feel empty and silent all of a sudden? Let’s take a deep breath and look at what’s left of our investments – and what you can expect from now on.

Summary

  • The NFT market collapsed from its peak in early 2022, but some collections remain strong;
  • Collectors should often research and manage their NFT portfolio and the general market;
  • You can check on your investment using the DappRadar NFT Value Estimator, NFT Explorer, and Portfolio Tracker.

Consistent demand for NFTs 

Even though the NFT market has collapsed quite a bit in terms of trading volume, there’s still plenty of trading activity happening. In January 2022 there were 1.82 million unique active wallets trading NFTs, and that number has dropped.

But since March, the number of monthly unique traders has consolidated between 0.97 million and 1.22 million. In August, the wider NFT market saw 1.09 million unique wallets trading NFTs. 

NFT Monthly Unique Traders
Source: DappRadar

Amidst macroeconomic turmoil involving the disruption of supply chains, an energy crisis, the highest inflation rate ever recorded in the United States, and a war between Ukraine and Russia, there’s still a consistent demand for NFTs.

But, the price of cryptocurrencies has dropped dramatically since its peak in November 2021. The value of bitcoin (BTC) has dropped from $69,000 to the current $19,000. Ether (ETH) lost 72% of its value, dropping from $4,878 to its current value of $1,348. This automatically means that NFTs priced in ETH lose a similar percentage of their value. 

Or, maybe they don’t? 

NFTs as a store of value

NFTs can be anything, as these contracts give the wallet holder ownership over a digital asset. This digital asset can be a membership pass to a community, but also a ticket to a music festival or a sword in a video game.

However, in this case, we’re mainly talking about NFTs as part of a Web3 brand or community. The social element and branding should not be underestimated, as those features can make or break a collection.

After the launch of Hashmasks on January 28, 2021, the concept of NFTs as profile pictures combined with a strong community element ignited the entire NFT space.

Of course, CryptoPunks was already there, followed by the Meebits avatars and the Bored Ape Yacht Club. This last one has become a brand that made its way into pop culture, thanks to celebrity involvement, music videos, and brand partnerships. 

Through the NFT Explorer on DappRadar, anybody can find interesting data on various NFT collections. Out of the top 10 NFT collections based on their trading volume in the past 30 days, various projects were already here in January. 

NFT CollectionJanuary 2022September 2022USD Difference
CryptoPunks59.95 ETH / $161,26563.95 ETH / $85,37347%
Bored Ape Yacht Club61.8 ETH / $166,24273 ETH / $97,45541%
Mutant Ape Yacht Club11.49 ETH / $30,90814.3 ETH / $19,09038%
Meebits3.00 ETH / $8,0703.39 ETH / $4,52538%
CloneX3.8 ETH / $10,2226.58 ETH / $8,78414%
Cool Cats8.5 ETH / $22,8652.78 ETH / $3,71183%
Doodles8.88 ETH / $23,8878.88 ETH / $11,85450%
ETH – January closing price $2,690 / September closing price $1,335

While someone’s investment in ETH would have had their portfolio drop 72% in value since January, some of these NFT collections mentioned above have proven to be a better store of value. Sure, they dropped in value, but not as much as the underlying currency itself.

This shows that NFTs can be an investment hedge amidst turmoil in the crypto space.

Not every NFT collection has the same amount of success. For every collection mentioned above, there are probably dozens of others that had their value completely wiped out.

The value of an NFT collection depends on the delivery of the team, community engagement, the utility of the NFT, and the roadmap of the project. Without effort or added value, an NFT collection will likely see its value drop toward zero.

Check your NFT estimated price

From the price analysis above, you can understand it is extremely important to be aware of the market value of your investments. Therefore NFT collectors will love DappRadar’s solutions:

You can find the estimated value of an NFT in three ways:

Find prices using NFT Value Estimator 

The NFT Value Estimator is a tool that you can use to get accurate estimates of the current value of NFTs from 68 of the top Ethereum-based NFT collections.

DappRadar NFT Value Estimator
Estimate the value of an NFT with the NFT Value Estimator

Machine learning algorithms continuously calculate the estimated value of an NFT based on its metadata and the latest sale price. 

Follow these steps to discover the value of individual NFTs:

  1. Go to the NFT Value Estimator and select the NFT collection of your choice from the dropdown.
  2. Type in the ID of the NFT you want to find. For example, when you want to search for CryptoPunk #1234, you need to type 1234 as the ID number. 
  3. Press “Check price”
  4. And you will get the estimated price of that particular NFT.

Dive into NFT collections using the NFT Explorer 

You can find the NFT Explorer by going through the Portfolio Hub. In the menu on the left side, you will find the NFT Explorer. 

DappRadar NFT Explorer
Dive into collections with the DappRadar NFT Explorer
  1. Go to the NFT Explorer
  2. Use the search bar or the NFT Rankings to find the NFT collection you’re looking for
  3. You can now search the collection in three ways:
    1. Use the search bar to find a particular NFT using its ID number
    2. Sort the collection based on estimated or last sale price
    3. Or filter the collection based on its metadata

Discover the value of the NFTs in your wallet

The third and final way to discover the price of an NFT is through the Portfolio Tracker. In the Portfolio Tracker, you can keep an eye on your own wallets or follow the wallets of others. In these portfolios, you can find tokens, DeFi positions, and of course, NFTs. For these NFTs, you either get the last sale price, the floor price, or the estimated value. 

DappRadar NFT Portfolio Tracker
Have a complete view of the NFTs in a wallet with the DappRadar Portfolio Tracker
  1. Go to the Portfolio Tracker
  2. Select your own wallet, or someone else’s 
  3. Go to the NFT Gallery using the menu on the left
  4. Each NFT shows an estimated price, last sale price or floor price. 

Based on the combined value of all NFTs in a particular wallet, the total value of all NFTs in that particular wallet gets calculated. 

Keep learning about NFTs with DappRadar

If you got this far and still are unsure about the outcome of your NFT investments, know that you are not alone. But whatever the current value of your NFT portfolio may be, you should always keep investing in knowledge and education.

To continue your learning path into collectibles and Web3, check out our educational guides on the DappRadar blog.

You’re also welcome to join the exclusive DappRadar PRO community, participate in Discord discussions, and make use of the latest NFT stats.

Useful links

The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your own research.

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