The NFT market has endured a challenging 2024, with transaction volume and sales activity falling to three-year lows. A report from blockchain analytics company DappRadar showed that annual transaction volume fell by 19% and the number of sales fell by 18% compared with 2023.
The recession comes despite broader growth in the cryptocurrency space, including Bitcoin hitting all-time highs and increased DeFi activity. Experts point to high valuations and declining buyer participation as key factors driving share prices lower.
While certain high-value transactions and platforms have shown resilience, the overall market faces significant challenges in maintaining momentum.
Source: DappRadarMarket trends continue to decline
Transaction volume in the first quarter reached $5.3 billion, a 4% increase compared to the same period in 2023. By the third quarter, deal volume had dropped to $1.5 billion, before recovering slightly to $2.6 billion in the fourth quarter.
These fluctuations reveal a larger trend: While individual NFT prices have increased as the cryptocurrency’s value has increased, total transaction volume has declined. This indicates a decline in market participation, as fewer participants are willing to pay the high prices associated with NFTs.
High-profile franchises such as Yuga Labs’ Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) have seen significant drops in value. BAYC’s floor price fell to 15 ETH, while MAYC’s floor price fell to 2.4 ETH. Likewise, Otherdeeds (an NFT tied to Yuga’s Otherside metaverse) dropped to 0.23 ETH, well below its original mint price.
Source: DappRadarMarket dynamics and future prospects
This year, the competitive landscape of the NFT market has also changed significantly. Blur is a zero-fee trading platform that becomes a dominant player by using targeted campaigns and aggressive strategies to attract a core group of active users.
By the end of the year, Blur’s trading volume was on par with OpenSea, the largest NFT market in history. However, OpenSea faced regulatory challenges and declining user engagement, leading to significant layoffs.
Going forward, the NFT market may need a significant correction to recover. Volume reached $562 million in November, the highest monthly volume since May, indicating some stabilizing potential. Analysts say affordability, accessibility and availability will be critical to sustainable growth through 2025.
