In this research, we collected a comprehensive list of over 5,000 NFTs from NFTscan, including their floor price, market cap, and trading volume. Our analysis focused on two main aspects: determining if NFTs are truly “dead” and assessing their profitability for holders.
Determining if NFTs are Dead:
We defined an NFT as “Dead” if it met any of the following criteria:
- Trading volume equals 0
- 7-day sales are fewer than 20
- No activity on Twitter
Following this, we calculated their lifespan by determining their start and end dates, defined as follows
- Start: Domain registration date
- End: Last post date on Twitter
Assessing NFT Profitability
First, we used the NFTScan API to collect all transactions, totaling approximately 5 million and gathered information on the holders of specific NFT collections. Next, we computed the profit and loss (PnL) for each holder by analyzing their transactions over a 5-year period. This allowed us to determine whether they are actually gaining or losing money from trading NFTs.
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