Non-fungible token (NFT) buying and selling volumes plummeted by greater than 60% in February, persevering with a downward development that started in early 2024.
In line with DappRadar analyst Sara Gherghelas, NFT buying and selling volumes reached $1.36 billion in December however dropped 26% in January earlier than plunging one other 50% in February.
“While NFTs had been showing signs of a comeback in recent months, their momentum has slowed since the start of the year,” she famous in a March 6 trade report.
NFT Hunch Mirrors Crypto Market Decline
The downturn is intently linked to broader cryptocurrency value actions.
In December, the full crypto market capitalization soared to an all-time excessive of $3.71 trillion, with Bitcoin briefly surpassing $109,000 in January earlier than declining.
Nonetheless, by February, a lot of those good points had been erased because of macroeconomic uncertainty surrounding U.S. President Donald Trump’s proposed tariffs on main buying and selling companions.
Alongside the NFT stoop, exercise in decentralized functions (dApps) additionally weakened, with day by day distinctive energetic wallets lowering by 8% to roughly 24 million.
Nonetheless, NFT-related exercise bucked this development, rising by 6% in February. Round 3.5 million customers interacted with NFT platforms, pushed partially by rising curiosity in synthetic intelligence-powered belongings.
“The increasing integration of artificial intelligence into NFT projects signals a shift toward more dynamic, interactive digital assets with enhanced utility,” Gherghelas mentioned.
“The evolving landscape suggests that while speculative trading may fluctuate, NFTs with strong utility, engagement, and real-world applications will drive long-term adoption in Web3.”
Regardless of the broader market slowdown, profile image (PFP) NFTs remained probably the most traded class, producing $243 million throughout 76,385 gross sales.
Gaming NFTs adopted with $41 million in buying and selling quantity, whereas sports activities NFTs led in transaction rely, recording 659,097 gross sales value $7.7 million.
NFT Market Rebounds in 2024 with $8.83B in Gross sales
The NFT market closed 2024 on a optimistic be aware with annual gross sales surpassing $8.83 billion, a 1.1% enhance from 2023’s $8.7 billion, in response to CryptoSlam knowledge.
Ethereum and Bitcoin led the market, every producing $3.1 billion in gross sales, adopted by Solana with $1.4 billion.
In whole NFT gross sales, Ethereum stays dominant with $44.9 billion in all-time gross sales, trailed by Solana at $6.1 billion and Bitcoin at $4.9 billion.
Regardless of the slight restoration, 2024’s gross sales volumes have been considerably decrease than the market’s peak years.
NFT gross sales hit $15.7 billion in 2021 and soared to $23.7 billion in 2022, making 2024’s whole a 43.9% and 62.8% decline from these peak durations.
The market’s resurgence started after a seven-month stoop, with gross sales reaching their lowest level since 2021 in September.
Nonetheless, a rebound emerged within the closing quarter. October gross sales rose by 18% to $353 million, adopted by a six-month excessive of $562 million in November.
December concluded the 12 months strongly, attaining $877 million in gross sales—the fifth-highest month-to-month whole of 2024.
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