In 2024, the NFT market recorded the lowest trading volumes and sales figures since 2020, according to the DappRadar analytics platform.
Decline in NFT Trading Volumes
The DappRadar report indicated that NFT trading volumes in 2024 decreased by 19% from 2023, reaching $13.7 billion. Sales counts dropped by 18% to nearly 50 million, making 2024 one of the worst-performing years since 2020. Despite a 4% increase in Q1 trading volumes to $5.3 billion compared to Q1 2023, the subsequent decline to $1.5 billion in Q3 and partial recovery to $2.6 billion in Q4 highlight significant volatility in the NFT sector.
Gaming Dominance and Pudgy Penguins' Success
The DappRadar report stated that gaming-related NFTs dominated in 2024 in terms of collections and sales counts. Epic Games' trading card game Gods Unchained took the top spot for gaming NFTs with $152 million in sales volume. Meanwhile, Pudgy Penguins emerged as the top NFT collection by trading volume, increasing by 140% to $786 million, even though the sales count dropped by 44%.
Sustainable Achievements
Pudgy Penguins expanded its lineup by launching plush toys and forming partnerships in mobile games and sports. This reinforces that NFTs with real-life utility continue to perform well. Perhaps 2024 taught us that NFTs don't need to be expensive to matter in the broader Web3 ecosystem.
The year 2024 demonstrated that the NFT market faced challenges with volatility and rising token prices, while gaming projects and collections with real-world applications proved more resilient.
