NFT Market Sees Significant Decline in Q2 2024
The sales volume for non-fungible tokens (NFTs) experienced a notable decline in the second quarter of 2024, with a 45% drop compared to the first quarter, according to data from CryptoSlam.
Sales Volume Drop
In the first quarter of 2024, NFTs achieved a total sales volume of $4.1 billion, continuing the momentum from the fourth quarter of 2023, which had a volume of $2.9 billion. However, this upward trend reversed in the second quarter, with sales volumes falling to $2.24 billion, the lowest since the third quarter of 2023.
Declining Monthly Transactions
June saw a particularly challenging period for NFTs, with the average value of an NFT sale decreasing by 59% compared to March. Additionally, June is on track to record the lowest number of NFT transactions since March 2021, as well as the lowest sales volume and number of unique sellers since October 2023. This suggests that NFT collectors may be holding onto their assets amid unfavorable market conditions.
Bitcoin Market Impact
The decline in NFT trading volume coincides with a negative outlook for the Bitcoin market. Analysts have forecasted that Bitcoin could potentially drop to $50,000 due to emerging price patterns indicating a downturn. Factors such as the upcoming U.S. elections and the Consumer Price Index later in 2024 could also impact Bitcoin’s price.
Milestones Amid the Downtrend
Despite the overall decline, NFTs have reached several milestones in 2024. Solana-based NFTs set a record for all-time sales volume in February, reaching $5 billion. Bitcoin-based NFTs have also made significant gains, recording a volume of $4.27 billion on June 18, placing third in all-time sales volume for NFTs, surpassing the Ronin network.
Conclusion
While the NFT market has seen a substantial decline in Q2 2024, the sector continues to achieve notable milestones, indicating ongoing interest and potential for future growth despite current market challenges.
