NFT market collapse wipes out 95% of collections' value by 2026

Four years ago, non-fungible tokens (NFTs) were everywhere—celebrities promoted them, and billions of dollars changed hands. But today, the market has collapsed, with 95% of NFT collections now worth nothing. Once a booming trend, NFTs have seen their value plummet, leaving investors with heavy losses.

At their peak, NFTs traded for over US$2.7 billion in a single month. High-profile collections like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club soared in value, with BAYC reaching prices of 150 to 400 ETH per token in early 2022. By March 2026, however, the same NFTs were trading for under 5 ETH—a drop of more than 95%. Forbes reported BAYC's floor price at US$12,000, down from a peak of US$394,764.

The crash followed a series of setbacks: the 2022 crypto bear market, regulatory crackdowns by agencies like the SEC, and high-profile failures such as the FTX collapse. Rising interest rates and fading celebrity interest also contributed to the decline. Even collections once backed by stars now struggle to hold value. New Zealand saw its own NFT ventures. Former All Black Dan Carter co-founded Glorious, a platform for artists to sell digital art as NFTs, with reported backing from rich-lister Craig Heatley. Brooke Howard-Smith launched NF Labs, creating Fluf World NFTs in partnership with rapper Snoop Dogg. Yet, despite these efforts, most projects failed to sustain long-term value. Experts remain divided on the future of NFTs. University of Auckland law professor Alex Sims compares the boom to the dotcom bubble, suggesting the underlying blockchain technology may still have uses. University of Otago senior lecturer Olivier Jutel, however, doubts a resurgence, arguing NFTs lack real-world economic ties. Swyftx NZ country manager Paul Quickenden advises caution, urging investors to assess business models, team credibility, and market conditions before committing funds. Some projects, like Damien Hirst's *The Currency*—backed by physical art—may retain value longer than others. But for most NFTs, the dramatic fall from hype to near-worthlessness has left few winners.

The NFT market's collapse has wiped out fortunes, with once-highflying collections now trading at a fraction of their peak. While a few projects tied to established artists or real-world assets endure, the majority have lost nearly all value. Investors and creators alike now face a market far removed from the frenzy of 2021.