Decline in NFT Sales Volume Amid Bitcoin Market Downturn

Decline in NFT Sales Volume Amid Bitcoin Market Downturn

In 2024, the non-fungible token (NFT) market witnessed a sharp decline in sales volume, dropping by 45% quarter-on-quarter as the Bitcoin market exhibited downward momentum.

According to CryptoSlam data, NFTs achieved a total sales volume of $4.1 billion in the first quarter of 2024, continuing the upward trend from the fourth quarter of 2023, which saw a volume of $2.9 billion. However, this positive trajectory did not last.

Downward Momentum for NFTs

Despite the initial growth in Q1, the NFT market faced a significant downturn in the second quarter of 2024. The total sales volume of digital collectibles fell to $2.24 billion, marking the lowest quarter since Q3 2023 and representing a 45% decrease from the previous quarter.

June proved particularly challenging for the NFT market, with the average value of an NFT sale dropping by 59% compared to March. Additionally, June is on track to record the lowest number of NFT transactions since March 2021. This month is also expected to see the lowest sales volume and number of unique sellers since October 2023, suggesting that collectors are opting to hold their assets amid unfavorable prices.

Bitcoin Market Downturn

The decline in NFT trading volume coincides with a negative outlook for the Bitcoin market. On June 24, analysts predicted that Bitcoin could potentially drop to $50,000 due to emerging price patterns indicating a more significant downturn.

Markus Thielen, founder of 10x Research, noted that the United States elections and the Consumer Price Index later in 2024 could further negatively impact Bitcoin’s price.

New Milestones for NFTs

Despite the downward trend, the NFT market reached several significant milestones in 2024. In February, Solana-based NFTs set a new record for all-time sales volume. On February 23, CryptoSlam reported that NFTs on Solana achieved a volume of $5 billion.

Bitcoin-based NFTs also saw impressive growth. On June 18, Bitcoin NFTs recorded a volume of $4.27 billion, securing the third spot in all-time sales volume for NFTs. This milestone allowed the Bitcoin blockchain to surpass the Ronin network, which previously held the position.

In summary, while the NFT market experienced a notable decline in sales volume amid the Bitcoin downturn, it also achieved remarkable milestones, particularly for Solana and Bitcoin-based NFTs.