The thriving NFT market now faces a stark reality in 2024. A striking 45% decline in sales of these digital collectible assets during the second quarter signals a noteworthy shift from the earlier upward trend witnessed in the year.
Data from CryptoSlam indicates a decline in NFT sales volume to $2.24 billion in Q2 from $4.1 billion in Q1 2024, mirroring a rise in negativity within the cryptocurrency market.
The decline appears prominently evident when reviewing the statistics for June. The average value of NFT sales plummeted by 59% in comparison to March, indicating a substantial decrease. Concurrently, the volume of transactions is poised to reach its lowest point since March 2021.
Moreover, the number of individual sellers has significantly reduced to levels not witnessed since October 2023. This trend suggests that collectors are retaining their assets, anticipating a potential market revival.
Effects on Leading NFT Collections
This waning enthusiasm impacts even the most renowned NFTs collections. Yuga Lab’s Bored Ape Yacht Club, once the face of the NFT frenzy, currently trades below its peak prices of 2021. While CryptoPunks retains a market value of $885 million, it displays indications of a slowdown.
NFT PriceFloor co-founder Nicolas Lallement suggests that the market’s recovery heavily depends on the overall sentiment within the market. He anticipates a shift of capital towards established NFTs if the launch of spot Ethereum ETFs triggers a surge later in the year. However, the landscape has evolved since the last NFT boom.
Lallement noted:
We now have NFTs on Bitcoin, Solana and Ethereum L2s, so the market is not concentrated just in Ethereum as it used to be.
Additionally, NFT analytics site NFT Valuations CEO Mahan Fathi highlights a change in speculative focus. He observes a prevailing trend towards memecoins and DeFi, particularly with the recent involvement of celebrities in these areas, emphasizing the restricted liquidity entering the NFT market.
Despite the general decline, prominent collectors in the high-end market continue to attract attention. In February, a complete set of Autoglyphs NFTs was successfully auctioned for $14.5 million, while an exceptionally rare alien CryptoPunk was purchased for $12.5 million in April. Nonetheless, these figures are overshadowed by the sale of an alien CryptoPunk for $24 million during the peak of 2022.
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