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CDS Crypto News NFT Market Faces Record Low Sales Volume Since Late 2023

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NFT Market Faces Record Low Sales Volume Since Late 2023

Zeynep Öztürk29/07/20241 Mins read119

NFT Market Faces Record Low Sales Volume Since Late 2023

Non-fungible tokens (NFTs) are on track to record their lowest monthly sales volume since November 2023.

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As of July 29, data from CryptoSlam indicates that the monthly sales volume for digital collectibles has reached $393 million. With daily volumes falling below $14 million, July might become the lowest or second-lowest performing month for NFTs this year.

In June 2024, NFTs recorded a significant decline in sales volume, reaching only $450 million. This was the lowest monthly figure since November 2023.

Continuing their downward trend, NFTs have seen a substantial drop since the second quarter of 2024. Sales volumes plummeted by 45% quarter-on-quarter, with the first quarter of 2024 boasting $4.1 billion in sales, compared to just $2.24 billion in the second quarter.

Despite lower volumes earlier in July, there was a notable increase in the number of NFT transactions for the month. CryptoSlam reported 9.9 million NFT transactions in July, a 73% increase from June’s 5.7 million.

Web3 professionals remain optimistic about the future of NFTs despite these lower volumes. SuperRare co-founder Jonathan Perkins told Cointelegraph that NFTs remain a powerful token standard with unchanged utility.

NFTs are “here to stay”

In an interview with Cointelegraph, CryptoSlam founder Randy Wasinger emphasized that NFTs are far from dead. He stated:

“I certainly wouldn’t say NFTs are dead. In fact, I would say that NFTs, just like all digital blockchain assets, are here to stay.” Wasinger noted that while certain NFT applications driven by previous hype cycles may never return to their former glory, this does not signal the end for NFTs. Some use cases have peaked and may not see previous levels of adoption again.

“PFPs [picture-for-profile], for example. I don’t see that ever regaining the volume and adoption level it had a year or two ago,” Wasinger added.

However, Wasinger believes that more robust Web3 applications will increasingly require NFTs. He also predicts that use cases will continue to evolve in a positive direction. “I don’t know if it’ll necessarily be reflected in large sales volume numbers like we’ve seen at least anytime soon, but I do foresee it manifesting in perhaps larger transaction volumes,” he explained.