According to a recent DappRadar report, non-fungible tokens (NFTs) endured possibly their worst year in 2024, with trading volumes and sales reaching their lowest levels since 2020.
However, the report notes that NFT trading volume was 19% lower than in 2023 at $13.7 billion, while total sales were down 18%. Cryptocurrencies have also appreciated, making NFTs less within reach and accessible to people worldwide.
Fluctuations in quarterly performance
As far as trading volume is concerned, it is presently observed that by the first quarter of 2024, this trading type rose by 4 percent or $5.3 billion, but as the formation progressed, the market hit significant milestones. But the trading volume significantly reduced by the third quarter to $ 1.5 billion. The final quarter saw a slight boost to $2.6 billion in trading volumes. Nevertheless, the yearly figure is lower than the highest indicators recorded in 2022, and total trading amounted to $57.2 billion, and 121.7 million shares were sold.
Key trends and top performers
NFTs relevant to gaming continued dominating the sector even as they recorded lower performance. NFTs like Gods Unchained distinguished this centralized gift with an overall CHF of 152 million in sales in 2024. This was down 27% compared to the previous year, and game sales were down 18%, amounting to 3.860 million.
The performance of a collection called NFT Pudgy Penguins was one of the few success stories in an otherwise slow year. Its trading volume increased by 140 percent to $786 million in 2024, while the overall sales decreased by 44 percent. The collection’s floor price increased by 114%, primarily due to its use cases, such as physical merchandise, which includes a plush toy sold in Walmart and Selfridge, a mobile game, and sports sponsorship.
Expert opinions and market outlook
However, some experts still hold positive views regarding the sector’s ability to carry forward NFTs’ capability in 2024. Finally, Honest Vision co-founder Raoul Pal tried to sound bullish about the future of NFTs while decrying attempts to draw parallels between the AI-based crypto and NFT space. While interviewed on Twitch, Pal said NFTs could have a massive revival period because they create blockchain transactions and value.
While the total market capitalization of AI Cryptos increased by more than 7% in 24 hours, the same parameter for NFTs.raws only 2% per the same period, as per the CoinGecko data. But, according to Pal, the same thing may happen in the NFT market since meme coins in the crypto sphere do the same.