Nansen<\/strong> has said.<\/p>\nThe average cost to mint an NFT peaked in May of 2021 at ETH 0.56 (USD 1,741), before it dropped to a low of ETH 0.06 (USD 186) in June 2021. Since July 2021, the average cost to mint NFTs has been between ETH 0.07 (USD 217) and ETH 0.1 (USD 311), according to Nansen\u2019s report.<\/p>\n
A possible reason for this, the firm said, is that NFT minting is becoming more competitive as more new projects are brought to the market.<\/p>\n
Between January 2021 and February 2022, the number of minted collections increased by a whopping 4,800%, from 39,802 to 1.97m, the report said.<\/p>\n
The result appears to have been a sharp drop in minting costs in the first half of 2021, with costs after that stabilizing at a much lower level.<\/p>\nSource: Nansen<\/figcaption><\/figure>\nMeanwhile, Nansen also said in its report that as costs to mint new NFTs have come down, the number of projects that end up \u201cdead\u201d has risen.<\/p>\n
\n\u201cWhen analyzing the profitability of minted NFTs, it shows that, on average, one in three NFTs minted go on to become a dead collection with little or no trade activity,\u201d the firm said.<\/p>\n<\/blockquote>\n
Still, it added that it\u2019s not all bad and that the proportion of new NFTs that are in profit relative to their minting cost is increasing.\u00a0<\/p>\n
\nConsequently, the proportion of new NFTs that end up as dead collections is gradually decreasing, Nansen said.<\/p>\n<\/blockquote>\n
In conclusion, Nansen said that participating in NFT mints is something investors should only do after \u201ccareful consideration,\u201d while noting that this also includes having an understanding of the macro outlook for the NFT market.<\/p>\n
Additionally, it is crucial to conduct due diligence on the project an investor is considering to participate in, and this includes researching \u201cthe community, their roadmaps and the founding team\u2019s history,\u201d the report warned.<\/p>\n
____<\/p>\n
<\/strong> – 6 NFT Use Cases That Will (Probably) Remain After the Hype Dies Down – NFT Market Continues to Outperform Crypto Despite Correction \u2013 Nansen<\/p>\n– NFTs Coming to Instagram in \u2018Several Months\u2019 as Metaverse is ‘Next Chapter of the Internet’ – Zuckerberg – NFT Rental Has Major Growth Potential as ‘Airbnb of the Metaverse’ – Analysts<\/p>\n
– Ethereum Scaling Platform Loopring Soars on New GameStop NFT Partnership – ApeCoin Soars After Launch, BAYC NFT Prices Pump and Dump<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Source: AdobeStock \/ Mininyx Doodle \u00a0 The minting of non-fungible tokens (NFTs) is becoming increasingly competitive, with more new projects created and the cost to mint new NFTs being cut. However, a number of NFTs minted still end up as part of a \u201cdead collection\u201d with no trading activity — though, notably, the proportion of […]<\/p>\n","protected":false},"author":1,"featured_media":9582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[43],"tags":[],"class_list":["post-9581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nft"],"yoast_head":"\n
NFT Minting is Increasingly Competitive, But One in Three NFTs End Up Dead - Nansen | NFT & Crypto News<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n