In 2024, the NFT market faced a decrease in trading volumes and the number of transactions, contrasting with the overall cryptocurrency market growth.
Decline in Trading Volume
NFT trading volume decreased by 19%, from $16.9 billion in 2023 to $13.7 billion in 2024, marking one of the weakest years since the market boom in 2020-2021.
Factors Behind the NFT Market Decline
The waning interest in NFTs for art, gaming, and collectibles amid oversupply and the growing focus on other crypto assets like Bitcoin and Ethereum diverted investor attention.
NFT Sectors Most Affected
Digital art and collectible NFTs, such as Bored Ape Yacht Club and CryptoPunks, saw declining activity, while interest in gamified and utility-driven NFTs started to rise. Gaming NFTs lacked compelling use cases, leading to reduced user engagement.
DappRadar's report highlights a challenging year for the NFT market in 2024, with trading declines reflecting shifts in market sentiment and economic pressures. Opportunities for recovery remain through innovation and integration with emerging technologies like AI and the metaverse.
