In 2024, the market for non-fungible tokens (NFTs) experienced a substantial decline, with sales volume dropping by 45% compared to the previous quarter, largely influenced by the downward trajectory of the Bitcoin market.
According to CryptoSlam data, NFTs achieved a robust sales volume of $4.1 billion in the first quarter of 2024, continuing the positive momentum observed since the fourth quarter of 2023 when sales amounted to $2.9 billion. However, this growth was short-lived.
The decline in NFT sales became pronounced in the second quarter of 2024, recording a quarterly volume of $2.24 billion, the lowest since Q3 2023. This represents a stark 45% decrease from the previous quarter, signaling a notable reversal in momentum.
June proved to be particularly challenging for NFTs, witnessing a staggering 59% decrease in the average value of NFT sales compared to March. Moreover, transaction volumes are on track to hit their lowest levels since March 2021, alongside recording the lowest sales volume and the fewest unique sellers since October 2023. This suggests a trend where NFT holders are opting to retain their assets amidst unfavorable market conditions.
The downturn in NFT trading coincides with a pessimistic outlook for Bitcoin, a pivotal leader in the NFT sector. Analysts have projected potential declines for Bitcoin, possibly dropping to $50,000 as emerging price trends indicate a significant downturn. Markus Thielen, founder of 10x Research, highlighted concerns surrounding the impact of upcoming events such as the United States elections and the Consumer Price Index later in 2024, which could further dampen prices.
Despite these challenges, NFTs achieved notable milestones in 2024. For instance, Solana-based NFTs set a new record for all-time sales volume in February, reaching $5 billion according to CryptoSlam data. Additionally, Bitcoin-based NFTs climbed the ranks, recording a sales volume of $4.27 billion on June 18, securing the third position in historical NFT sales volumes, surpassing the Ronin network which previously held this spot.
Overall, while facing significant headwinds in 2024, NFTs continue to navigate a dynamic market landscape characterized by fluctuating sentiments and evolving trends in the cryptocurrency ecosystem.
Source: CryptoSlam