A study by NFTevening and Storible has shown that the NFT market in 2024 faced significant challenges, including drastic token price drops and failed projects.
NFT Market Profitability Struggles
The 'State of 2024 NFT Drops' report indicated that in 2024, a monthly average of 3,635 new collections contributed to market oversaturation. According to the report, 98% of NFT launches were unprofitable and had no trading activity since September. 84% had an all-time high price equal to their mint price, gaining no additional value. Only 0.2% of all collections yielded investor profits.
Excitement for New NFT Projects Drop
The flooding of the market with a massive number of projects has diminished NFTs' relevance and lowered trading volume in the past six months. Dune Analytics data shows that OpenSea, once a leading platform, saw a decrease in daily trading volume by 76.32% from earlier this year. Minting volumes were affected as 64% of drops had fewer than 10 mints.
Survey Shows NFT Enthusiasts Remain Hopeful
At the beginning of the year, both NFT and crypto markets faced bearish trends. Despite factors like oversaturation and economic conditions, the majority of NFT enthusiasts remain hopeful about the long-term potential of their assets. Over 66% of traders plan to hold onto their assets, though 33% are contemplating leaving the market by 2026.
Despite significant challenges and lack of profitability for most NFT projects in 2024, a substantial portion of investors continue to hope for market improvement and long-term capital growth.
