NFT Boom Fizzles: Trading Volumes Plummet Amid Crypto Downturn

NFT Boom Fizzles: Sharp Drop in Trading Volume Raises Concerns

NFTs gained momentum in the last months of 2024, but last month’s trading volumes were down more than 60% from December. The reduction was accompanied by a decline in the cryptocurrency market. According to a March 6 market study by DappRadar researcher Sara Gherghelas, the overall trading volumes for NFTs reached $1.36 billion in December. However, it dropped 26% month over month in January and then another 50% in February. Gherghelas blamed its association with cryptocurrency prices for the decline in NFT valuations.

While NFTs had been showing signs of a comeback in recent months, their momentum has slowed since the start of the year,

Gherghelas

Trump’s Tariff Policy Hits Crypto: Will NFTs and AI Assets Lead the Comeback?

Due to growing macroeconomic uncertainties around Trump’s tariffs on US trading partners, most of the cryptocurrency market’s gains in February were lost. In February, decentralized app activity also slowed. It is believed that there were 24 million daily unique active wallets, an 8% decrease. When it comes to NFT activity, which increased by 6% in February, or 3.5 million users interacting with NFT platforms, and a growing interest in AI-powered assets, DappRadar observed a reversal of the trend.

The increasing integration of artificial intelligence into NFT projects signals a shift toward more dynamic, interactive digital assets with enhanced utility. The evolving landscape suggests that while speculative trading may fluctuate, NFTs with strong utility, engagement, and real-world applications will drive long-term adoption in Web3,

Gherghelas

According to a January DappRadar analysis, NFTs saw their worst year since 2020 in 2024, with $13.7 billion in trading volume and less than $50 million in revenues, mostly due to volatility and rising token values. When NFTs first gained popularity in 2022, they had their best year, according to DappRadar, with trading volumes of $57.2 billion and market sales of 121.7 million.

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