NFT Market Collapse: Once-Million-Dollar Tokens Now Face Steep Devaluation

The NFT boom that captivated the world from 2021 to 2022 has dramatically faded, leaving investors holding significantly depreciated digital assets. According to recent data, the total NFT market value has plummeted from its May 2022 peak of $526 billion to approximately $18 billion today—a staggering 97% decline. A 2023 dappGambl report revealed an even grimmer reality: 95% of NFT holders currently possess assets with zero investment value, with 69,795 out of 73,257 identified NFT series trading at 0 ETH.

The Fall of Celebrity-Backed Collections

During the height of the craze, mainstream celebrities embraced NFTs en masse. Justin Bieber, LeBron James, Tony Hawk, and Madonna purchased high-profile pieces, while Snoop Dogg and Eminem performed as Bored Ape Yacht Club avatars at the MTV Video Music Awards. In January 2022, Paris Hilton enthusiastically discussed her NFT portfolio on “The Tonight Show” with Jimmy Fallon. Yet these high-profile endorsements failed to sustain market momentum.

CryptoPunk #5822: From $23.7M to Halved Value

CryptoPunk #5822 exemplifies the dramatic losses early investors face. On February 12, 2022, Deepak Thapliyal, CEO of blockchain banking company Chain, purchased this rare Alien CryptoPunk for 8,000 ETH ($23.7 million). Just one month later, Thapliyal turned down an offer of 10,000 ETH that would have netted him a $2 million immediate profit.

Today, comparable Alien CryptoPunks tell a sobering story. CryptoPunk #635 sold for 4,000 ETH ($12.4 million) in April 2024, while CryptoPunk #3100 fetched 4,500 ETH in March 2024. These transactions suggest Thapliyal’s investment has roughly halved in value within two years. However, there’s a silver lining: while the NFT itself depreciated, the underlying Ethereum has appreciated. The same 8,000 ETH worth $23.7 million in February 2022 would be worth approximately $26.6 million today.

EtherRock #93: A $1 Million Loss on a Digital Rock

The EtherRock collection, launched in 2017, consists of 100 “pet rocks” derived from free clipart. While most stones are gray or brown, blue EtherRocks are the rarest. On November 2, 2021, EtherRock #93—a plain grey rock—sold for 420 ETH, valued at $1.8 million at the time.

Today, a typical EtherRock trades for approximately 200 ETH ($750,000-$800,000), representing a loss of roughly $1 million from its 2021 peak. The purchase rationale—paying nearly $2 million for a simple JPEG—now seems emblematic of the irrational exuberance that characterized the market.

Bored Ape #8817: Golden Hair Lost Its Luster

Bored Ape Yacht Club achieved unprecedented mainstream penetration during the 2021-2022 boom. High-profile collectors included sports figures like those featured in “Shark Tank,” musicians, Oscar-winning actress Gwyneth Paltrow, and DJ Steve Aoki, who accumulated at least 12 before reducing his holdings to seven.

On October 26, 2021, Sotheby’s announced the sale of Bored Ape #8817 for $3.4 million—a record price justified primarily by its golden hair, a trait appearing in less than 1% of the collection. During the same period, comparable golden apes commanded similar valuations: Bored Ape #3749 sold for $2.9 million in September 2021, while Bored Ape #232 fetched $2.9 million (1,080 ETH).

The trajectory of these assets has been sharply downward. Bored Ape #232’s owner, notably the same Chain CEO Thapliyal, later sold the ape for 800 ETH—a loss of 280 ETH or $730,000 at current Ethereum valuations. Most dramatically, on February 12, 2024, a golden Bored Ape #1726 sold for merely 275 ETH ($665,000). If this price reflects the current market valuation of golden apes, investors holding similar pieces face unrealized losses exceeding millions of dollars.

The Broader Market Reality

Lesser-known NFT projects have suffered even more severe devaluation than marquee collections. The vast majority of NFT investors have experienced complete capital erosion, with virtually no recovery prospects. Some collectors attempt to justify their investments through non-monetary arguments—positioning NFTs as art for aesthetic appreciation rather than financial instruments. From a technical standpoint, blockchain technology has proven robust and immutable, permanently recording digital ownership certificates that cannot be disputed or revoked, even if the NFT itself has become financially worthless.