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The non-fungible token (NFT) market recorded its worst performance since 2020, with trading volumes dropping 19% to $13.7 billion in 2024, according to blockchain analytics firm DappRadar. The decline came despite a recent surge in cryptocurrencies.
“On an annual basis, NFT trading volume decreased by 19% in 2024, compared to 2023, and NFT sales saw an 18% decline,” DappRadar noted in its annual industry report released on January 14, 2025.
The total number of NFT sales also fell from 60.6 million in 2023 to 49.8 million in 2024. This downturn contrasted starkly with Bitcoin’s 125% surge in value over the same period.
Changing trends and platform wars
The NFT market showed volatility throughout the year. Trading volumes started strong at $5.3 billion in the first quarter before plummeting to $1.5 billion by the third quarter. A modest recovery in the final months brought fourth-quarter volume to $2.6 billion.
Some bright spots emerged despite the overall decline. The Pudgy Penguins collection bucked the downward trend. Its trading volume rose 114% as the project expanded into physical merchandise through partnerships with major retailers like Walmart and Selfridges.
Gaming-related NFTs also showed resilience, with Gods Unchained leading the category with a $152 million trading volume. However, this represented a 27% decrease from the previous year.
Market dynamics shifted significantly among NFT trading platforms. Blur maintained market dominance through strategic tactics, including zero-fee trading and airdrop campaigns. Meanwhile, OpenSea faced regulatory challenges after receiving a Wells Notice from the Securities and Exchange Commission in August 2024.
A fading boom
NFTs first gained mainstream attention during the pandemic, driven by skyrocketing valuations of assets like Bored Apes and CryptoPunks. At their peak in 2022, trading volumes soared to $57.2 billion, and sales reached 121.7 million. Today’s figures represent a 76% drop from those record levels.
Higher token prices contributed to the decline. Ethereum’s rising value made many NFTs more expensive for collectors, discouraging new purchases. This made convincing investors of their long-term utility a challenge.
“Perhaps 2024 helped us realize that NFTs don’t need to be expensive to prove their importance in the broader Web3 ecosystem,” DappRadar’s report concluded. The statement hints at a maturing market where utility matters more than speculation.
The future of NFTs likely depends on projects that can deliver real value to users. While the days of instant millionaires might be over, a new generation of practical digital assets could be just beginning.
