For the nft space, 2024 has been an eye-opener as it has exposed some alarming patterns as the market develops. The market is trying to maintain the momentum it had previously with an explosion of new collections, low participation and sharp price drops. We seek the truth by looking at the performance of 29,079 new nft drops from 2024. Let's explore the facts that tell the story.
Key ideas:
- 98% of 2024 nft releases are dead.
- Only 0.2% of 2024 nfts yield profits for investors.
- 64% of 2024 nft drops are under 10 mints.
- 98% of 2024 nft drops have less than 10 trades in the first week.
- In 98% of 2024 nft drops, the price drops by at least 50% in the first three days.
- 84% of 2024 nft drops have an ATH price equal to the mint price.
Methodology
Data sources: Dune Analytics and OpenSea.
- First, we collected different Dune nft contracts that had minting activities between January 1, 2024 and August 31, 2024. There were 29,079 collections in total. We then double-check the data using the OpenSea API to ensure its accuracy.
- We then use Dune Analytics to track and analyze:
- The minting price, ATH price, current price and price three days after the minting process have been finalized.
- 7D minting volume, 7D trading volume and trading volume since September.
Market oversaturation
So far in 2024, an average of 3,635 nft collections have been created per month. While this shows that creators are still eager to release projects, the sheer volume of collections indicates an oversaturated market. Supply has grown far beyond demand, leaving many projects struggling to attract attention and buyers.
98% of 2024 nft releases are dead
We define death as the absence of commercial activity since September 2024.
Based on this, we can conclude that: 98% of 2024 nft releases are dead.
This demonstrates how quickly projects fail, resulting in many collections lacking liquidity, community or commercial activity. The survival rate of new drops is surprisingly low, indicating that most nfts struggle to remain relevant soon after launch.
When we dig deeper into these three numbers: mintage, trade and price, the situation gets worse.
Low minting and trading activity
Despite the large number of new collections, 64% of 2024 nft drops are under 10 mints. This stark figure highlights the difficulty most creators face in getting their projects off the ground. Besides, 98% of nft drops recorded less than 10 trades during the first week. The limited trading volume indicates a lack of investor enthusiasm or confidence in these projects.
Such low participation suggests that many collections fail to resonate with the public, possibly due to a lack of uniqueness, usefulness, or perceived value. The rapid nft trend may have left creators competing in an overcrowded market where distinguishing themselves has become an uphill battle.
Rapid price drop
One of the most alarming trends in 2024 is the rapid depreciation of nft values after launch. 98% of the 2024 declines follow the same pattern: the price falls by at least 50% in the first three days.
This sharp drop reflects the waning enthusiasm of buyers and the absence of long-term interest in owning these digital assets.
Besides, 84% of 2024 nft drops have seen their all-time high price equal to their mint pricemeaning they never appreciated in value. In a market where speculative trading once reigned, this trend suggests that buyers are losing confidence or becoming more selective in the projects they back.
Only a small fraction generates profits
In 2024, only 0.2% of all nft drops generated profits for investors. Even Among nfts that are still actively trading (“live” nfts), only 11.9% have proven to be profitablereflecting the general difficulties faced by most projects. These figures reveal how selective and cautious investors need to be, as the vast majority of nfts struggle to retain or increase in value, making profitability a rare outcome in the current market landscape.
What does this mean for the future?
The data paints a clear picture: while nfts remain a vibrant space for innovation, the market is currently flooded with projects struggling to find traction. With oversaturation, low minting rates, and poor price performance, creators may need to rethink their strategies, focusing on building a community and offering real utility to stand out.
nft-Drops-Infographic.png” fetchpriority=”high” decoding=”async” alt=”Infographic on nft drops on the state of 2024″ width=”699″ height=”1610″ data-brsrcset=”https://technicalterrence.com/wp-content/uploads/2024/10/Status-of-2024-NFT-Drops”https://technicalterrence.com/crypto/nft/”>nft-Drops-Infographic.png 699w, https://technicalterrence.com/wp-content/uploads/2024/10/Status-of-2024-NFT-Drops”https://technicalterrence.com/crypto/nft/”>nft-Drops-Infographic-130×300.png 130w, https://technicalterrence.com/wp-content/uploads/2024/10/Status-of-2024-NFT-Drops”https://technicalterrence.com/crypto/nft/”>nft-Drops-Infographic-445×1024.png 445w, https://technicalterrence.com/wp-content/uploads/2024/10/Status-of-2024-NFT-Drops”https://technicalterrence.com/crypto/nft/”>nft-Drops-Infographic-667×1536.png 667w” data-brsizes=”(max-width: 699px) 100vw, 699px”/>
