The nft market endured a challenging 2024, with trading volumes and sales activity falling to their lowest levels in three years. TO report by blockchain analysis firm <a target="_blank" href="https://x.com/dappradar” target=”_blank” rel=”noopener”>DappRadar revealed a 19% decrease in annual trade volumes and an 18% drop in the number of sales compared to 2023.
The slowdown comes despite broader growth in the cryptocurrency space, including all-time highs for bitcoin and increased DeFi activity. Experts point to inflated valuations and reduced buyer participation as key factors driving the decline.
While certain high-value transactions and platforms showed resilience, the broader market faced significant challenges in maintaining momentum.
Steady declines in market trends
Trading volumes in the first quarter reached $5.3 billion, an increase of 4% compared to the same period in 2023. However, this modest growth was short-lived. In the third quarter, trading volumes had fallen to $1.5 billion before recovering slightly to $2.6 billion in the fourth quarter.
These fluctuations revealed a broader trend: while individual nft prices increased in line with rising cryptocurrency values, the total number of transactions decreased. This indicates lower market participation, as fewer participants were willing to pay the often high prices associated with nfts.
High-profile collections like Yuga Labs' Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) saw significant drops in value. The minimum price of BAYC fell to 15 eth, while the minimum price of MAYC decreased to 2.4 eth. Similarly, Otherdeeds, nfts tied to Yuga's Otherside metaverse, fell to 0.23 eth, well below its initial price.
Market dynamics and future prospects
The year also saw notable changes in the competitive landscape of nft markets. Blur, a fee-free trading platform, emerged as a dominant player by employing targeted campaigns and aggressive strategies to attract a core group of active users.
By the end of the year, Blur's trading volumes rivaled those of OpenSea, historically the largest nft marketplace. OpenSea, however, faced regulatory challenges and a decline in user engagement, leading to significant layoffs.
Looking ahead, the nft market may require significant adjustments to recover. November trading volumes reached $562 million (the highest monthly total since May), indicating some potential for stabilization. Analysts suggest that affordability, accessibility and usability will be critical to sustainable growth in 2025.