The post NFT Trading Volumes Fell to The Lowest Since 2020: DappRadar appeared on BitcoinEthereumNews.com.

The NFT market recorded its weakest performance since 2020, with trading volumes falling 19% compared to 2023, according to new data from DappRadar. The report shows that NFT sales counts also dropped by 18% throughout 2024, marking a continued decline in market activity. Trading volumes fluctuated through the year, reaching $5.3 billion in Q1, before dropping to $1.5 billion in Q3, and recovering to $2.6 billion in Q4. Despite higher token prices, particularly ETH, the lower sales counts indicate reduced overall market participation. 2024 Q1 Started With Decent Strength The NFT market’s decline in 2024 reveals distinct patterns across different quarters. Q1 started with relative strength, as trading volumes reached $5.3 billion, marking a 4% increase over the same period in 2023. However, this momentum did not last, with Q3 volumes falling to $1.5 billion, showing one of the lowest quarterly figures in recent years. – Advertisement – The market saw a partial recovery in Q4, with volumes rising to $2.6 billion. This uptick coincided with higher cryptocurrency prices, particularly Ethereum, which affects NFT valuations directly. Source: DappRadar The data shows that while individual NFT prices increased in line with rising ETH values, the number of actual sales fell, pointing to reduced market participation. The trading pattern indicates a shift in market situation, with fewer but higher-value transactions taking place. This change appears linked to several factors: institutional traders focusing on premium collections, retail investors showing less interest in lower-priced NFTs, and the broader impact of cryptocurrency market conditions on NFT valuations. The reduced sales count, despite higher individual transaction values, suggests a more concentrated market with fewer active participants. Established NFT Collections Faced Mixed Results In 2024, established NFT collections faced mixed results, with Pudgy Penguins standing out as a notable performer despite broader market challenges. The collection saw…

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Filed under: News - @ January 15, 2025 7:27 pm