In 2024, the market for non-fungible tokens (NFTs) saw a sharp decline of 45% in sales volume compared to the previous quarter, coinciding with a downturn in 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 upward trend initiated in Q4 2023, where sales reached $2.9 billion.
The shift to a downward trajectory comes as analysts express pessimism about Bitcoin (BTC), a prominent figure in the NFT arena. Despite a positive start in Q1, the second quarter of 2024 witnessed a significant downturn in NFT sales volumes. The digital collectibles amassed $2.24 billion, marking the lowest figure since Q3 2023 and reflecting a substantial 45% drop from the previous quarter.
June proved particularly challenging for NFTs, with the average sale value plummeting by 59% compared to March. Additionally, the month is set to record the lowest transaction volume since March 2021, alongside the fewest unique sellers and lowest overall sales volume since October 2023. These trends suggest that NFT holders may be opting to retain their assets amidst unfavorable market conditions.
The decline in NFT trading coincides with bearish sentiment in the Bitcoin market, where analysts have speculated a potential drop to $50,000, citing emerging price patterns indicative of a significant downturn. Markus Thielen of 10x Research noted potential additional pressures from the U.S. elections and the Consumer Price Index later in 2024.
Despite these challenges, NFTs achieved notable milestones throughout 2024. Solana-based NFTs, for instance, set a new all-time sales record in February, reaching $5 billion in volume. Similarly, Bitcoin-based NFTs ascended in popularity, achieving a volume of $4.27 billion on June 18 and claiming the third position in historical NFT sales volumes, surpassing the Ronin network.
Amidst these developments, the market continues to evolve, presenting both opportunities and challenges for participants across various blockchain networks.
[Image Caption: 30-day sales volumes for NFTs in 2024. Source: CryptoSlam]