NFT Market Faces Decline Amid Bitcoin Downturn, Sales Volume Drops 45% in Q2 2024
- The initially strong NFT market is now recording a downward momentum, experiencing declines in key metrics such as sales volumes, and the number of unique sellers and buyers.
- This downturn has been associated with the ongoing difficulties in the Bitcoin market.
- The previously vibrant market saw substantial shrinkage, according to recent Cryptoslam data.
Explore the latest trends and analysis of the declining NFT market amidst Bitcoin’s rough patch in our in-depth article.
NFT Market Plummets in Q2 2024
Data from Cryptoslam reveals a significant dip in NFT market activity during the second quarter of 2024, with sales volumes dropping by 45% compared to the previous quarter. The total NFT sales volume in Q1 2024 was an impressive $4.1 billion, showing growth from $2.9 billion in Q1 2023. However, Q2 2024 saw volumes fall dramatically to just $2.28 billion, marking the lowest levels since Q3 2023.
Impact on Average Sale Prices and Monthly Trends
June 2024 has been particularly harsh, with the average sale price of NFTs plummeting from $193 in March to $78 by the end of June—a 60% decrease. By June 28, sales volumes had slumped to about $419 million, on track to record the lowest monthly sales since October 2023.
Similarly, May saw sales volumes barely surpass $616 million, a stark contrast to April’s $1.2 billion, representing a drop of over 50% within a month.
Fewer Unique Participants in the Market
The downturn isn’t limited to sales volumes; other critical metrics like the number of unique sellers and buyers are also declining. In Q1 2024, there were approximately 2,238,925 unique sellers and 3,316,014 unique buyers. By Q2, these numbers had slipped to 1,785,367 unique sellers and 3,300,566 unique buyers.
Key Milestones Amid the Decline
Despite the bearish trend, NFTs have hit some notable milestones in 2024. As of February 23, Solana-based NFTs surpassed $5 billion in all-time sales volume. Additionally, earlier this month, Bitcoin-based NFTs moved into the third position for all-time sales volume, overtaking the Ronin network.
These developments come amid Bitcoin’s struggles, which after peaking in March 2024, witnessed a downturn, falling to around $57,000. Currently, Bitcoin is priced at $61,327, with experts suggesting cautious accumulation during this period.
Conclusion
With declining sales volumes and reducing numbers of unique buyers and sellers, the NFT market is undergoing a notable slowdown. However, milestones achieved by Solana-based and Bitcoin-based NFTs indicate underlying potential. As Bitcoin’s market continues to fluctuate, stakeholders should keep a close watch, leveraging expert insights and data-driven strategies to navigate these challenging times.
