2024 Witnesses a 45% Dip in NFT Sales Amidst Bitcoin Market Downturn
Summary:
In 2024, the sales volume of non-fungible tokens (NFTs) shrank by 45% quarter-on-quarter amidst a downturn in Bitcoin market. Q2 recorded the lowest sales volume ($2.24 billion) for NFTs since Q3 2023. June signaled the lowest average sale value and the least transactions for NFTs, suggesting that collectors are possibly retaining their assets due to decreased prices. The NFT decline coincides with pessimistic forecasts for Bitcoin, which might potentially drop to $50k. Despite the downturns, there were positive milestones, with Solana-based NFTs setting an all-time sales volume record in February, and Bitcoin-affiliated NFTs climbing the ranks in gross sales volume.
In 2024, non-fungible tokens (NFTs) saw a 45% dip in sales volume quarter-on-quarter, in line with the decline in the Bitcoin market. CryptoSlam revealed that the initial quarter of 2024 presented a robust sales volume for NFTs amounting to $4.1 billion, a surge maintained from the last quarter of 2023 which totaled $2.9 billion. This reduction in momentum comes amidst predictions of a downward trend for the NFT market leader, Bitcoin (BTC). Despite a positive trajectory in the first quarter, Q2 witnessed a marked plummet in the volume of NFT sales. Digital assets garnered a volume of just $2.24 billion, the trough since Q3 2023, translating to a significant 45% slump from the previous quarter. The dwindling value was also felt in the average NFT sale with June registering a 59% dip compared to March. Moreover, June is on course to log the least NFT transactions since 2021. The month seems likely to report the lowest sales volume and unique vendors since October 2023, a possibility indicative of collectors retaining their assets due to the unfavorable pricing. The falling NFT trade volume is concurrent with grim forecasts for the Bitcoin market. On June 24, experts warned of a probable slip to $50,000 in price resulting from predicted further downturns. Markus Thielen, 10x Research founder, noted that the 2024 forthcoming US elections and Consumer Price Index could exacerbate this decline. Despite these downward trends, NFTs have not been without their triumphs in 2024. NFTs affiliated with Solana set a new record for gross sales volume in February. According to CryptoSlam data, Solana-affiliated NFTs attained a volume reaching $5 billion on February 23. The Bitcoin affiliated NFTs are also gaining momentum, securing the third rank in the all-time sales volume for NFTs on June 18, with a recorded volume of $4.27 billion, surpassing the previous holder, Ronin network.
Published At
6/26/2024 11:03:45 AM
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