Trading volumes of non-fungible tokens (NFTs) fell by almost 60% in February, extending a declining trend that started in early 2024.according to the DappRadar analyst Sara Gherghelas. She said in an industry analysis on March 6 that "although NFTs had been showing signs of a comeback in recent months, their momentum has slowed since the start of the year."
NFT Slump Reflects Declining Crypto Market
The decline is intimately related to more general fluctuations in the price of cryptocurrencies. Bitcoin nearly surpassed $109,000 in January before falling, and the whole cryptocurrency market value shot to an all-time high of market $3.71 trillion in December 2024. However, the macroeconomic uncertainty surrounding U.S. President Donald Trump's proposed tariffs on major trading partners caused a significant portion of these profits to be lost by February. The decline in NFT was accompanied by a decline in decentralized application (dApp) activity, with daily unique active wallets falling by 8% to about 24 million. Activity linked to NFT, however, defied this pattern and increased by 6% in February. Growing interest in assets powered by artificial intelligence contributed to the approximately 3.5 million users who interacted with NFT platforms.
"A move toward more dynamic, interactive digital assets with enhanced utility is signaled by the growing integration of artificial intelligence into NFT projects," Gherghelas stated. "The changing landscape indicates that NFTs with strong utility, engagement, and real-world applications will drive long-term adoption in Web3 even though speculative trading may fluctuate." With 76,385 sales and $243 million in revenue, profile picture (PFP) NFTs continued to be the most traded category in spite of the general market slump. Sports NFTs topped the transaction count with 659,097 sales totaling $7.7 million, while gaming NFTs came in second with $41 million in trading volume With Performance.
In 2024, the NFT market recovers with $8.83 billion in sales.
According to CryptoSlam data, the NFT market ended 2024 on a high note, with yearly sales of over $8.83 billion, upto the 1.1% from $8.7 billion in 2023. With $3.1 billion in sales apiece, Ethereum and Bitcoin were the market leaders, followed by Solana with $1.4 billion. With $44.9 billion in cumulative NFT sales over the years, Ethereum continues to lead the market, followed by Solana ($6.1 billion) and Bitcoin ($4.9 billion). Sales volumes in 2024 were far lower than in the market's peak years, even with the modest rebound. The sum for 2024 is a 43.9% and 62.8% decrease from the peak years of 2021 and 2022, when NFT sales reached $15.7 billion and $23.7 billion, respectively. After a seven-month decline, the market started to recover, with sales hitting their lowest level since September 2021.
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