The collapse of NFT market: Digital goldmine turns into digital dust; here are the biggest losers | Mint
The collapse of NFT market: Digital goldmine turns into digital dust; here are the biggest losers
The NFT market has collapsed, losing up to 99% of its value as excitement waned. Famous purchases by stars like Eminem and Justin Bieber have turned into significant losses.
Digital collectables were once sold for millions, attracting celebrities, technology supporters and ordinary buyers. During 2021 and early 2022, non-fungible tokens (NFTs) became a part of the cryptocurrency craze. Buyers hoped these digital assets would bring wealth, status and access to exclusive communities.
NFT is a digital record of ownership linked to an item. These items included artwork, video clips and pieces of internet history. Their appeal depended heavily on rarity, celebrity attention and expectations of rising prices.
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However, there has been a sharp collapse in the NFT after that excitement faded. Some prominent assets have reportedly lost between 95% and 99% of their value. Buyers were left facing huge losses and difficulty finding anyone willing to purchase.
Three factors helped push prices higher. Exclusive clubs made ownership feel like a symbol of social status. Many buyers expected someone else to pay more later. Celebrity purchases encouraged others to join, fearing they would miss the next big opportunity.
NFT: Biggest losers
Justin Bieber’s purchase offers an example. In January 2022, he bought Bored Ape Yacht Club token number 3001 for $1.3 million. He reportedly paid nearly five times the collection‘s lowest market price. The artwork had relatively-common features, despite its expensive purchase price.
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However, an estimated price does not guarantee a buyer. Selling becomes especially difficult when interest falls, and few people remain willing to spend.
Another example involves an NFT linked to Jack Dorsey’s first tweet. Cryptocurrency entrepreneur Sina Estavi bought it for $2.9 million in March 2021. Dorsey promised to convert the money into Bitcoin and donate it to charity.
Estavi later tried selling the token for $48 million in April 2022. He also promised to donate part of the proceeds. The auction’s highest bid reached just $280. Later estimates placed its trading value at tiny fractions of a dollar.
During 2021-2022, people rushed to buy virtual land. Millions of dollars were spent to buy digital pixels in virtual real estate. The Sandbox, which had an average floor price of 2.86 ETH, has crashed 96% to fractional amounts of Ethereum.
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Decentraland has suffered a drop of over 90%. On the other side, Yuga Labs’ ambitious metaverse land was sold for 5 ETH. It has suffered a similar fate just like The Sandbox.
Other famous buyers also saw their valuations decline. Eminem bought a Bored Ape for roughly $450,000 while Stephen Curry paid $180,000. Madonna, Neymar Jr and Snoop Dogg also held digital assets affected by similar declines.
The collapse followed weaker demand and reduced money flowing into risky digital assets. The crash shows how prices supported mainly by excitement can quickly fall.
Many buyers suffered heavily. Rare ownership alone could not maintain interest once the rush ended. Celebrity involvement also failed to protect buyers from falling prices or disappearing demand.
About the Author
Sounak Mukhopadhyay covers trending news, sports and entertainment for LiveMint. His reporting focuses on fast-moving stories, box office performance, digital culture and major cricket developments. He combines real-time updates with clear context for everyday readers. <br><br> Sounak brings newsroom experience across breaking news, explainers and long-form features. He has a strong emphasis on accuracy, verification and responsible storytelling. His work tracks audience behaviour, celebrity influence and the business of sport and cinema. He helps readers understand why a story matters beyond the headline. <br><br> Sounak has contributed to widely read digital publications. He continues to build a body of journalism shaped by consistency, speed and editorial clarity. He is particularly interested in the intersection of media, popular culture and public conversation in contemporary India. <br><br> At LiveMint, he writes daily coverage as well as analytical pieces that interpret numbers, trends and cultural moments in accessible language. His approach prioritises factual depth, balanced framing and reader trust. The reporting aligns with modern newsroom standards of transparency and credibility. <br><br> Outside daily reporting, he explores storytelling across formats including podcasts, filmmaking and narrative non-fiction. Through his journalism, Sounak aims to document the rhythms of modern entertainment and sports while maintaining rigorous editorial integrity. <br><br> Sounak continues to develop audience-focused journalism that connects speed with substance in a rapidly-changing information environment. His work seeks clarity, trust and lasting public value in every story he reports.
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