In this research, we collected a comprehensive list of over 5,000 NFTscan, including their minimum price, market cap, and transaction volume. Our analysis focused on two main aspects: determining whether nfts are truly “dead” and assessing their profitability for holders.
How to Determine if nfts Are Dead:
We define an nft as “Dead” If you met any of the following criteria:
- Trading volume equals 0
- 7-day sales are less than 20
- There is no activity on twitter
Next, we calculate its useful life by determining its start and end dates, defined as follows:
- Begin: Domain registration date
- End: Date of last post on twitter
Evaluating nft profitability
First, we used the NFTScan API to collect all transactions, which total approximately 5 million, and gathered information about the holders of specific nft collections. Next, we calculated the profit and loss (PnL) of each holder by analyzing their transactions over a 5-year period. This allowed us to determine whether they are actually making or losing money from trading nfts.