Recent analysis has revealed that the non-fungible token (nft) market ran into trouble in 2024, with premature price drops and several failed projects.
The research conducted by NFTevening and digital PR agency Storible examined more than 29,000 nft collections published throughout the year, collecting data from OpenSea and Dune analytics.
Struggles for profitability of the nft market
Nicknamed “<a target="_blank" href="https://nftevening.com/state-of-2024-nft-drops/” target=”_blank” rel=”noopener” data-wpel-link=”external”>Status of 2024 nft Drops”, the study found that in 2024, a monthly average of 3,635 nft collections were created in what was considered an oversaturation of the market.
According to the report, 98% of nft drops were unprofitable and have not recorded any trading activity since September. Furthermore, the token prices also fell by at least 50% within the first three days of its launch.
The incredibly high percentage of nft drops that saw fewer than ten trades within the first seven days of their release is concerning because it could mean investors are less excited about upcoming projects.
Furthermore, 84% of nft drops in 2024 had an all-time high price (ATH) equal to their mint price, meaning they never gained any additional value.
According to NFTevening analysis, only a meager 0.2% of all non-fungible token collections generated profits for investors. Even among actively traded or “live” nfts, only 11.9% have proven lucrative, illustrating how deeply projects are struggling for a positive outcome.
Enthusiasm for new nft projects drops
Flooding the market with a colossal number of projects has left nfts struggling to remain relevant, directly affecting commerce across the industry. This was illustrated by the significant drop in trading volume over the past six months.
Data from a dune analysis panel reveals that OpenSea, once one of the leading nft marketplaces, has witnessed a 76.32% daily trading volume drop in its securities from the beginning of the year. Additionally, minting volumes have also been affected, with 64% of nft drops having less than 10 mintage.
Survey Shows nft Enthusiasts Remain Hopeful
In January, both the nft and cryptocurrency markets struggled to overcome the prevailing bearish sentiment. Nearly ten months later, cryptocurrency investors are turning a profit, with bitcoin hitting all-time highs and dragging several altcoins with it.
However, nft traders have been left behind. With factors such as market oversaturation, scams, and difficult economic conditions, the situation could get worse before it gets better.
That said, a recent <a target="_blank" href="https://nftevening.com/will-people-stay-or-leave-nfts/” target=”_blank” rel=”noopener” data-wpel-link=”external”>survey The same publication showed that the majority of nft enthusiasts are willing to take advantage of the storm. According to the study, more than 66% of nft traders plan to hold on to their assets, believing they have undeniable long-term growth potential.
However, around 33% are considering leaving the market, with 72.3% indicating their intention to do so by 2026. Of this number, 36.4% intend to exit the market by 2024 and 35.9% by 2025. , and 27.7% remain undecided, possibly waiting for market conditions. improve before making a final decision.
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