The sales volume of non-fungible tokens (NFTs) experienced a significant decline of 45% in the second quarter of 2024, as the Bitcoin market showed a downward trend. According to data from CryptoSlam, NFTs generated a total sales volume of $4.1 billion in the first quarter of 2024, continuing the positive momentum from the previous quarter, where it reached $2.9 billion.
Despite the initial increase in the first quarter, NFT sales volumes experienced a sharp decline in the second quarter. Digital collectibles only generated a quarterly volume of $2.24 billion, the lowest since the third quarter of 2023, marking a 45% decrease compared to the previous quarter.
June was a particularly challenging month for NFTs, with the average value of an NFT sale dropping by 59% compared to March. Additionally, June is on track to record the lowest number of NFT transactions since March 2021. It will also have the lowest sales volume and number of unique sellers since October 2023, suggesting that NFT collectors are choosing to hold onto their assets due to unfavorable prices.
The decline in NFT trading volume coincides with a negative outlook for the Bitcoin market. Analysts predict that Bitcoin could potentially drop to $50,000 due to emerging price patterns indicating a more significant downturn. Markus Thielen, the founder of 10x Research, also believes that the upcoming United States elections and the Consumer Price Index in 2024 could further impact the price negatively.
Despite the downward trend, NFTs have achieved several milestones in 2024. Solana-based NFTs broke the all-time sales volume record in February, reaching $5 billion. Furthermore, Bitcoin-based NFTs have been climbing the rankings, with a sales volume of $4.27 billion on June 18, securing the third spot in all-time sales volume for NFTs. Bitcoin surpassed the Ronin network, which previously held that position.
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30-day sales volumes for NFTs in 2024. Source: CryptoSlam