In July 2024, the NFT market experienced a sharp decline. Despite the good news for the industry, NFT trading volume fell by 36%. This decline is evident in recent cryptocurrency market data. The decline suggests the market is struggling to maintain its previous momentum.
Last week, Pudgy Penguins founder Luca Netz announced that they had raised $11 million for the Abstract L2 network. The Chunky Penguin aims to become the mascot of all cryptocurrencies. Additionally, Doodles has released trailers for Dullsville and Doodleverse. Later they launched Doodles TV and Doodles Records. These updates excited the NFT community, but did not stop the overall decline.
Source:X
Earlier this month, Yuga Labs launched Project Dragon. This multiplayer game uses a third-person shooter format and involves thousands of players. Despite some gameplay issues, it was well received. Project Dragon will be launched again next month, adding more excitement to the NFT field.
Source:X
Global NFT market overview
Despite the good news, global NFT market sales have declined. Data from CryptoSlam.io shows that market sales fell 36% in July, with sales of $431 million. The number of investors buying NFTs also declined, involving nearly 1 million cryptocurrency traders, a quarterly decrease of 32%.
Source: Cryptoslam
Ethereum remains the largest blockchain by transaction volume
Ethereum remains the leading blockchain in the NFT market. In the past 30 days, sales of Ethereum-based NFTs reached $132 million, down 41% from the previous month.
Source: Cryptoslam
Solana and Bitcoin follow
Solana is the second largest blockchain by transaction volume. NFT collections on Solana generated $98 million in revenue in July, down 4.65% from June. Bitcoin, which powers the Runes, Ordinals and BRC-20 NFT series, is the third-largest blockchain by transaction volume, with sales of $74 million, down 53% from the previous month.
Polygon and other blockchain networks
Polygon, which scales Ethereum, ranked fourth in NFT transactions, with sales of $45 million, down 31% from June. Immutable X and Mythos Chain are both layer 2 networks for web3 games on Ethereum, ranking fifth and sixth in terms of transaction volume. Immutable X-based NFT sales were $20 million, up 74%, while Mythos Chain-based NFTs raised $17 million, down 10.74%.
NFT market forecast for August 2024
The cryptocurrency and NFT industry has been boosted by recent events such as the Bitcoin Conference and Inscribe in Nashville. Forecasts from prominent figures indicate a bullish trend. Donald Trump has speculated that Bitcoin could surpass gold in market capitalization, while Senator Cynthia Lummis has proposed that the US government hold 5% of the total Bitcoin supply.
All in all, while the NFT market faced challenging conditions in July, promising developments and forecasts suggest a strong rebound is likely in August.
