NFTs Faced Their Worst Year Since 2020 as Trading Volumes Plunged
The post NFTs Faced Their Worst Year Since 2020 as Trading Volumes Plunged appeared on BitcoinEthereumNews.com.
Despite challenges like rising token prices and market volatility, certain sectors still showed resilience. Pudgy Penguins specifically performed relatively well, and achieved impressive growth through real-world utility initiatives. On the bright side, new innovations in NFT use cases emerged globally. Indian Railways introduced NFT train tickets for the MahaKumbh Mela and South Korea’s Jeju Island is planning NFT-based tourist cards to attract younger visitors. Additionally, Transak partnered with Ronin Network to streamline NFT purchases via fiat. 2024: NFT Market’s Toughest Year Since 2020 Last year, the non-fungible token (NFT) market experienced its worst performance since 2020, according to DappRadar’s 2024 Dapp Industry Report. Trading volumes fell by 19% compared to 2023, reaching $13.7 billion. Sales counts also declined by 18% to just under 50 million. Yearly NFT trading volume and sales count (Source: DappRadar) The market’s downturn was riddled by volatility and increasing token prices, which made NFTs generally more expensive in 2024. Despite a promising start in Q1, with trading volumes rising 4% year-on-year to $5.3 billion, momentum fizzled out later in the year as volumes dropped to $1.5 billion in Q3 before partially rebounding to $2.7 billion in Q4. The decline in NFT market performance took place alongside a revitalized crypto market, where Bitcoin surged by more than 125% over the year. However, this recovery in the broader cryptocurrency sector did not translate into a similar resurgence for NFTs. However, Ethereum (ETH), which is a key currency in the NFT ecosystem, also saw rising prices and contributed to the increased cost of NFTs. Ethereum’s price action over the past year (Source: CoinMarketCap) Gaming-related NFTs held their dominance in the space. Epic Games’ Gods Unchained led in sales volume at $152 million, despite a 27% decline from the previous year. Pudgy Penguins emerged as the top NFT collection overall…
Filed under: News - @ January 15, 2025 10:29 am